JAG Capital Advisors LLC (JAG Advisors) has been hit with charges from a governmental regulatory body for fraudulent activity.
The Securities and Exchange Commission (SEC) brought the charges against the investment management firm and its owner, Joshua Goltry, today (12 June).
SEC lays down charges against JAG Capital Advisors
The government watchdog acted after events involving Goltry, and the firm raised red flags. Charges from the SEC allege that JAG Cap, LLC, and JAG Advisors, created and owned by Goltry, were involved in a web of lies about the performance, investment activity, and investment risks to investors.
These nine individuals poured their money into the seemingly legitimate pot, totaling $3 million. The SEC accuses the firm and its moving parts of being complicit in fraud to achieve this level of investment.
“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.
Goltry accused of fraud
Goltry is accused of flippantly spending $1 million of the garnered funds on himself and his high-profile lifestyle, including exorbitant purchases such as travel and jewelry.
According to the SEC report, Goltry is also accused of losing $1.7 million through “high-risk trading and speculative investments.”
The owner and the company are being held accountable for further charges of manipulating files and documentation to hide these losses. According to the SEC, investors were further swindled, with Grippo saying, “We will continue to diligently hold accountable those who exploit investors’ trust for personal gain.”
Goltry and the company have agreed to settle the charges of violating the antifraud provisions of the federal securities laws. A settlement date and a court decision are pending, but the U.S. Attorney’s Office for the District of New Jersey has also brought criminal charges against Goltry.
Image: Ideogram.
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