Investment Fund CIO Pleads Guilty to Securities Fraud

The founder and CIO of advisory firm JAG Capital Advisors LLC and investment fund JAG Cap LLC has pleaded guilty to securities fraud related to a three-year scam that bilked investors in purported “diversified tech opportunities” of at least $3 million.

According to court documents, from 2020 to 2023, Joshua Goltry solicited investments in JAG Capital by making material misrepresentations and omissions and “lied about nearly every aspect” of the fund’s operations, including its performance, investment activity and risk protocols.

For example, prosecutors said Goltry sent potential investors marketing materials in late 2020 that falsely claimed his firm earned positive returns during nearly every quarter from 2018 through mid-2020, with three of those quarters purportedly producing returns greater than 50%.

Goltry allegedly used the ill-gotten funds from the fraud on personal expenses and to repay previous investors. He used at least $1.1 million on travel, jewelry, personal credit card bills and rent for his Manhattan apartment, and he lost more than $1.7 million in high-risk trading and speculative investments.

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The Department of Justice acknowledged that Goltry used some of the funds to make investments; however, they did not match the type of investments he represented to investors, and he eventually lost the funds on unsuccessful trades and investments.

“Joshua Goltry admitted making outlandish claims in falsifying the achievements of his purported investment fund,” said Philip Sellinger, U.S. attorney for the District of New Jersey, in a statement. “In doing so, he duped investors out of millions of dollars, money they thought they were investing carefully, but which, in reality, this defendant was using to repay other investors or spending on his own bills.”

Goltry pleaded guilty to one count of securities fraud, which carries a maximum potential sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gain or loss resulting from the offense. He is scheduled to be sentenced on October 19.

In a parallel action, the Securities and Exchange Commission charged Goltry and JAG Advisors with violating anti-fraud provisions of federal securities laws, charges he agreed to settle.

“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 Grippo, regional director of the SEC’s Philadelphia office, in a statement. “We will continue to diligently hold accountable those who exploit investors’ trust for personal gain.”