Ramil Ventura Palafox, 60, pleaded guilty yesterday to wire fraud and money laundering for running a global Ponzi scheme that took money from more than 90,000 investors, according to court records.
Prosecutors say Palafox, a dual U.S. and Philippine citizen, ran Praetorian Group International and promised investors “daily returns of 0.5 to 3%,” while falsely claiming the firm traded bitcoin at scale. Instead, the complaint says, he used new investor funds to pay earlier participants and to finance a lavish lifestyle.
Scheme mechanics and timeline
From December 2019 to October 2021, at least 90,000 people worldwide put over $201,000,000 into PGI, the filings show. That total included $30,295,289 in fiat currency and 8,198 bitcoin, valued at about $171,498,528.
Despite the online statements, PGI was not running trading operations large enough to produce the returns it advertised. The government says Palafox created a website where victims could see false account statements that led them to believe their holdings were “gaining value.”
How were investors misled?
The court papers say the website and portal were central to the fraud. From 2020 through 2021, Palafox caused the portal to report steady gains and to represent investments as “profitable and secure.”
That steady feed of fabricated performance figures kept users invested and encouraged more deposits. Prosecutors argue those misrepresentations concealed the true source of payouts, which came from incoming investor money rather than legitimate trading profits.
Investor harm and restitution
As a result of the scheme, investors suffered losses of at least $62,692,007, the documents state. Palafox has agreed to pay that amount in restitution as part of his plea deal.
The figure reflects the shortfall between what investors put in and what they received back, after accounting for transfers and assets seized during the investigation.
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Luxuries and transfers traced to investor funds
Authorities tied lavish purchases to money diverted from investors. The filings list about $3,000,000 spent on 20 luxury cars, including brands like Porsche, Lamborghini, McLaren, Ferrari, BMW and Bentley.
Palafox also spent roughly $329,000 on penthouse suites and bought four homes in Las Vegas and Los Angeles worth more than $6,000,000.
Another $3,000,000 was spent at high-end retailers on clothing, watches, jewellery and home furnishings from stores including Louboutin, Neiman Marcus, Gucci, Versace, Ferragamo, Valentino, Cartier, Rolex and Hermes.
The records also show transfers to close associates. Prosecutors say Palafox moved at least $800,000 in fiat plus 100 bitcoin, then valued at roughly $3,300,000, to a family member.
Charges, plea and potential sentence
Palafox faces up to 40 years in prison on the charges, though actual federal sentences commonly fall short of the statutory maximum.
He is set for sentencing on Feb. 3, 2026, when a federal judge will determine his punishment after consulting the U.S. Sentencing Guidelines and other factors. As part of the plea agreement, he has accepted responsibility and agreed to the restitution figure noted above.
A human cost beyond dollars
The case focuses on more than monetary loss. Prosecutors and victims point out the emotional and social damage sustained by individuals who believed in PGI’s assurances.
Several investors participated through MLM and community-driven frameworks, which helped the globalisation of the scheme.
The losses affected families and retirement plans, the papers say, and left deep uncertainty for people who believed they were part of a legitimate trading business.
What comes next for victims and authorities?
Victims will be notified about restitution procedures and any asset recovery efforts. The government will seek to collect proceeds and return them where possible.
The Feb. 3, 2026, hearing will also set the formal record and may include victim statements. Meanwhile, investigators will continue tracing assets to identify additional recoverable funds.
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