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Man Arrested for Alleged Ponzi Scheme and Conspiracy to Defraud a Cleveland Bank

Posted on Jul 27, 2011

On Wednesday June 15, 2011, the FBI arrested 45-year-old Victor E. Cilli. Mr. Cilli is charged with one count of securities fraud and one count of conspiracy to commit bank fraud. The government alleges that Mr. Cilli's fraudulent actions accounted for about $2 million taken from investors.

Specifically, it is alleged that Mr. Cilli was involved in a Ponzi scheme from January - October 2007. Mr. Cilli is accused of defrauding at least four commodity pool investors out of about $500,000 by providing false and misleading statements that the money Mr. Cilli invested for them was making money when in fact it was operating at a loss. The government contends that the money that was provided to some commodity pool participants came from other pool participants instead of from investments.

Additionally, Mr. Cilli is charged with conspiracy to defraud KeyBank of Cleveland. It is alleged that Mr. Cilli and his co-conspirators falsely represented that they were going to use the proceeds of KeyBank loans to attend a flight school. According to the accusations, they never planned to attend the flight school and did not repay any of the loan money to this Ohio-based bank.

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