SEC Charges JAG Capital Advisors in $3 Million Fraudulent Investment Scheme
The U.S. Securities and Exchange Commission has charged Joshua Goltry and his investment management firm, JAG Capital Advisors LLC, with defrauding investors of at least $3 million over a three-year period.
Goltry, founder and chief investment officer of what the SEC refers to as “purported” equity fund JAG Cap LLC, and JAG Advisors, the “purported” equity fund’s investment manager, is accused of fabricating nearly every detail about the fund’s performance, investment activity, and risks from 2020 to 2023.
According to the SEC’s complaint, Goltry and JAG Advisors raised at least $3 million from approximately nine investors through deceitful practices. They allegedly misrepresented the fund’s performance and concealed significant trading losses. Instead of investing the money as promised, Goltry and his firm reportedly spent at least $1.1 million on personal expenses, including travel and jewelry, and lost more than $1.7 million through high-risk trading and speculative investments. To hide these losses, Goltry and JAG Advisors are accused of falsifying expense invoices and other documents.
“As alleged in the complaint, Goltry and JAG Advisors repeatedly lied to investors to lure them into investing in the JAG Fund and then lost their money or stole it to pay for lavish personal expenses,” said Nicholas P. Grippo, regional director of the SEC’s Philadelphia Regional Office. “We will continue to diligently hold accountable those who exploit investors’ trust for personal gain.”
The SEC’s complaint charges Goltry and JAG Advisors with violating antifraud provisions of federal securities laws. Both parties have agreed to settle the charges, pending court approval. The settlement includes a permanent injunction against further violations and leaves the determination of disgorgement, prejudgment interest, and civil penalties to the court.
In a related development, the U.S. Attorney’s Office for the District of New Jersey has announced criminal charges against Goltry.
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