March 27, 2013

CFTC Revokes Registrations of New Jersey-based Victor E. Cilli and Progressive Investment Funds LLC

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced the revocation of the registrations of Victor E. Cilli, formally of Hackensack, New Jersey, and his company, Progressive Investment Funds LLC (Progressive). Progressive was registered with the CFTC as a Commodity Pool Operator and Cilli was registered as an Associated Person of Progressive and listed as its sole principal.

On February 7, 2013, the CFTC Judgment Officer issued an Initial Decision on Default against Cilli and Progressive finding that they were statutorily disqualified from CFTC registration based on an order of permanent injunction entered by the U.S. District Court for the District of New Jersey on May 29, 2012 (District Court’s Order) (see CFTC News Release 6267-12). The District Court’s Order enjoined Cilli and Progressive from further violations of certain anti-fraud provisions of the Commodity Exchange Act (CEA) and permanently enjoined them from becoming registered with the CFTC or acting as a principal or agent of a registrant.

The CFTC’s Initial Decision on Default was also based on the October 3, 2011, criminal conviction of Cilli in United States v. Victor Cilli (U.S. District Court for the District of New Jersey) (Criminal Conviction) in which Cilli pleaded guilty to conducting a Ponzi scheme that defrauded four commodity pool investors of $506,000. Cilli was sentenced to serve 36 months in prison. The Initial Decision on Default finds that the District Court’s Order and the Criminal Conviction demonstrate that Cilli and Progressive are unfit to act as Commission registrants, and constitute valid bases for revoking Cilli’s and Progressive’s registrations under the CEA.

CFTC Division of Enforcement staff members responsible for this case are W. Derek Shakabpa, Judith M. Slowly, David Acevedo, Lenel Hickson, Jr., Stephen J. Obie, and Vincent McGonagle.

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Last Updated: March 27, 2013