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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23105 / October 6, 2014

Securities and Exchange Commission v. Puglisi, et al., Civil Action No. 2:14-mc-000247-ER (E.D. Pa.)

SEC Files Subpoena Enforcement Action Against John Puglisi, Progressive Capital Solutions LLC, and Others

The Securities and Exchange Commission announced today that, on September 30, 2014, it filed a subpoena enforcement action in the U.S. District Court for the Eastern District of Pennsylvania against John Puglisi, Progressive Capital Solutions LLC, and others. Puglisi and Progressive are defendants in a state court litigation brought by CMS Life Insurance Opportunity Fund, L.P. (which is also a respondent in the subpoena enforcement action) and CNF II Partners, in which it is alleged that Puglisi and Progressive-instead of safeguarding certain investments they were retained to make-had been stealing the investments and selling them for their own benefit. As set forth in the Commission's Application, the staff of the Commission's Philadelphia Regional Office is investigating whether there were misstatements and omissions related to the use of investor funds and the profitability, safety, value, and existence of assets purportedly owned by CMS Life Insurance Opportunity Fund and others.

Among other things, the subpoena enforcement action was filed because, despite the issuance of administrative subpoenas duces tecum to Puglisi and Progressive, they have not produced any documents and, thus, have not complied with the subpoenas. Pursuant to its Application, the Commission is seeking an order from the federal district court compelling compliance with various subpoenas and for other relief. The Commission notes that it is continuing to conduct a fact-finding inquiry and has not concluded that anyone has broken the law.

 

http://www.sec.gov/litigation/litreleases/2014/lr23105.htm


Modified: 10/06/2014