SEC Charges JAG Capital Advisors and Founder Joshua Goltry with Investor Fraud
Author: Destiny Aigbe
June 13, 2024
In a significant enforcement action, the Securities and Exchange Commission (SEC) announced charges against Joshua Goltry and his investment management firm, JAG Capital Advisors LLC (JAG Advisors), for a scheme that defrauded investors of at least $3 million over a three-year period.
Overview of the Case
According to the SEC’s complaint, between 2020 and 2023, Goltry, founder and Chief Investment Officer of JAG Cap, LLC, and JAG Advisors, engaged in a fraudulent scheme to mislead investors regarding the performance, investment activities, and risks associated with their purported equity fund. Goltry and his firm managed to raise at least $3 million from approximately nine investors by providing false information and assurances.
The complaint details that of the $3 million raised, Goltry and JAG Advisors diverted at least $1.1 million for personal use, including expenditures on travel and jewelry. Furthermore, more than $1.7 million was lost due to high-risk trading and speculative investments. To cover up these losses, Goltry and his firm allegedly falsified documents, including expense invoices, to deceive investors about the fund’s financial health.
SEC’s Response
Nicholas P. Grippo, Regional Director of the SEC’s Philadelphia Regional Office, emphasized the gravity of the allegations, stating, “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. 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 violations of antifraud provisions of federal securities laws. Both parties have agreed to settle the charges, subject to court approval. The settlement includes a permanent injunction against future violations of the charged provisions and leaves the determination of disgorgement, prejudgment interest, and civil penalties to the court.
Parallel Criminal Charges
In a related development, the U.S. Attorney’s Office for the District of New Jersey has announced criminal charges against Goltry, highlighting the serious nature of his actions and the commitment of federal authorities to pursue both civil and criminal penalties in cases of financial fraud.
SEC Investigation and Litigation
The SEC’s investigation was conducted by Suzanne C. Abt and Michael Cuff, under the supervision of Julia C. Green, Scott A. Thompson, and Nicholas P. Grippo from the Philadelphia Regional Office. The litigation will be led by Judson T. Mihok, supervised by Gregory R. Bockin.
CONCLUSION
This case underscores the SEC’s ongoing commitment to protecting investors from fraudulent schemes and holding perpetrators accountable. Investors are encouraged to perform due diligence and remain vigilant about the integrity of investment opportunities.
For further information, you can access the full SEC press release here.
About the Author
Destiny Aigbe
Managing Partner
Aigbe Law PLLC | Dark Alpha Capital
A Corporate and Securities Law Firm
With a robust foundation in law and finance, Destiny Aigbe has carved a distinguished career, underpinned by his pivotal role in orchestrating and managing complex transactions that have propelled companies to significant growth and market prominence. As a seasoned attorney and strategic advisor, Destiny has been instrumental in facilitating over $75 million in capital raises, demonstrating a keen acumen for securing funding and fostering investor confidence.
Destiny's leadership in the execution of six successful public listings, through meticulously structured reverse mergers and registration statements, showcases his adeptness in navigating the intricacies of the public markets and his capacity to guide companies through transformative growth phases. His involvement in five mergers as an operator further illustrates his versatile skill set, extending beyond legal expertise to include hands-on management and operational strategy, though these ventures did not involve funding.
Destiny's professional journey is marked by a commitment to excellence and a diverse range of experiences, from representing a wide spectrum of clients including public and private companies, and investment firms, to holding significant roles within the US government. His tenure with the US Department of State and the National Institutes of Health highlights his adaptability and his contribution to the advancement of entrepreneurial ventures in sectors like biotechnology and nanotechnology through strategic funding initiatives.
An alumnus of Vanderbilt University Law School, Destiny focused on Finance and Mergers & Acquisitions, further honing his expertise with a certificate in Law and Business. His foundational education in Finance was obtained with honors from the University of Maryland's Robert H. Smith School of Business, which laid the groundwork for his subsequent achievements in investment banking and legal practice.
Residing in the Washington, D.C. area, Destiny Aigbe continues to leverage his extensive experience and insightful leadership to drive innovation, growth, and success for his clients and the ventures he is involved with.
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