HACKENSACK, NJ – June 15, 2011 – Victor Eugene Cilli of Hackensack, New Jersey, has been charged with operating a Ponzi scheme through his company, Progressive Investment Funds LLC, the U.S. Commodity Futures Trading Commission (CFTC) announced today. Cilli allegedly defrauded at least four investors of approximately $506,000.
According to a complaint filed in the U.S. District Court for the District of New Jersey, Cilli and Progressive misled investors between September 2006 and February 2009 by making false statements in offering memoranda and through verbal misrepresentations. The CFTC alleges that Cilli falsely presented himself as a successful business manager and futures trader, concealing a prior $13.5 million bankruptcy in 2002 and limited futures trading experience – approximately one month.
The scheme involved providing investors with fabricated profit statements, masking consistent trading losses. Cilli allegedly used funds from earlier investors to pay returns to later investors, a hallmark of a Ponzi scheme. The CFTC also claims Cilli misappropriated at least $200,000 of pool funds for personal expenses, including dining, entertainment, motorcycle payments, and salon visits.
Further allegations include providing false information to the National Futures Association (NFA) regarding the composition of the investment pool and failing to maintain required documentation. Progressive is a CFTC-registered Commodity Pool Operator, and Cilli is registered as an Associated Person.
The CFTC is seeking restitution for defrauded customers, disgorgement of ill-gotten gains, civil monetary penalties, trading and registration bans, and permanent injunctions against future violations of federal commodities laws. The U.S. Attorney’s Office for the District of New Jersey and the NFA assisted in the investigation.
Source: CFTC.gov
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