Luxury Lifestyle Funded by Investor Cash
While investors were led to believe their funds were multiplying in digital markets, prosecutors said Palafox used substantial sums to market the operation and bankroll an extravagant lifestyle.
According to the U.S. Attorney’s Office for the Eastern District of Virginia, the scheme helped finance Lamborghinis, Rolex watches and residences in Los Angeles and Las Vegas. The glossy façade — high-end cars, luxury homes, polished presentations — functioned like stage lighting, illuminating a business model that prosecutors say was fundamentally hollow.
At least 90,000 investors worldwide funneled more than $200 million into PGI during the nearly two-year span, authorities said.
Health Claims Rejected by Government
Palafox, 60, sought a 10-year prison term in his own sentencing memorandum, acknowledging the seriousness of his crimes but pointing to his heart condition and open-heart surgery in June 2025. He argued that his life expectancy should factor into the court’s decision.
Federal prosecutors pushed back.
They described him as “a highly capable individual with no major ongoing health conditions,” noting there had been no complications from the surgery and that he had not raised ongoing concerns during the presentence investigation.
“It is the government’s understanding that the defendant is otherwise healthy,” prosecutors wrote, disputing the claim that his medical status justified a sharply reduced sentence.
