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SEC Charges Investment Firm with Defrauding Investors of $3 Million

Posted on July 8th, 2024 at 1:18 PM
SEC Charges Investment Firm with Defrauding Investors of $3 Million

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï

The U.S. Securities and Exchange Commission (SEC) has charged Joshua Goltry and his firm, JAG Capital Advisors LLC, with defrauding investors of at least $3 million over three years. DiWire reports that Goltry, the founder and chief investment officer of JAG Cap LLC, and JAG Advisors, allegedly fabricated nearly every detail about the fund’s performance, investment activity, and risks from 2020 to 2023.

The SEC’s complaint states that Goltry and JAG Advisors deceived approximately nine investors, misrepresenting the fund’s performance and concealing substantial trading losses. Instead of investing the money as promised, Goltry and his firm reportedly used at least $1.1 million for personal expenses, such as travel and jewelry, and lost over $1.7 million through high-risk trading and speculative investments. To cover those losses, they allegedly falsified expense invoices and other documents.

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. Additionally, the U.S. Attorney’s Office for the District of New Jersey has announced criminal charges against Goltry.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

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