SEC Case Closed as Criminal Prosecution Advanced
The criminal case followed parallel civil and criminal actions brought in March and April by Virginia federal prosecutors and the U.S. Securities and Exchange Commission.
The SEC’s civil case was closed in May after U.S. District Judge Leonie M. Brinkema permitted the U.S. Department of Justice to intervene and stayed discovery in light of the criminal indictment.
Representatives for the parties did not respond to requests for comment Friday.
The government was represented by Alexandra Zoe Bedell, Jack Morgan and Annie Zanobini of the U.S. Attorney’s Office for the Eastern District of Virginia. Palafox was represented by Nate Wenstrup of the Federal Public Defender’s Office.
With the 20-year sentence now imposed, the courtroom chapter of the PGI CEO $200M bitcoin ponzi scheme may be nearing its end. For tens of thousands of investors who watched promised daily gains dissolve into staggering losses, the financial aftershocks are likely to linger far longer.
