June 14, 2024/US SEC
The Securities and Exchange Commission today charged Joshua Goltry and his investment management firm, JAG Capital Advisors LLC (JAG Advisors), in connection with a three-year scheme to defraud investors of at least $3 million.
According to the SEC’s complaint, from 2020 to 2023, Goltry, the founder and Chief Investment Officer of a purported equity fund called JAG Cap, LLC, and JAG Advisors, the purported equity fund’s investment manager, raised at least $3 million from approximately nine investors by lying about nearly every aspect of the fund, including its performance, investment activity, and investment risks. Goltry is the principal of JAG Advisors. As alleged, of the funds raised, Goltry and JAG Advisors used 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. The complaint further alleges that Goltry and JAG Advisors falsified documents, including expense invoices, to conceal the trading losses from investors.
The SEC’s complaint charges Goltry and JAG Advisors with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1), 206(2) and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. Goltry and JAG Advisors agreed to settle the charges against them. The settlement, which is subject to court approval, would permanently enjoin Goltry and JAG Advisors from violating the charged provisions of the federal securities laws and provides that the court will decide the amounts of disgorgement, prejudgment interest, and civil penalties at a later date.
In a parallel action, the U.S. Attorney’s Office for the District of New Jersey announced criminal charges against Goltry.
The SEC’s investigation was conducted by Suzanne C. Abt and Michael Cuff and supervised by Julia C. Green, Scott A. Thompson, and Nicholas P. Grippo, all of the Philadelphia Regional Office. The litigation will be led by Judson T. Mihok and supervised by Gregory R. Bockin.
