SEC charges JAG Capital Advisors and Founder Joshua Goltry with defrauding investors

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. The fund raised at least $3 million from 9 investors by lying about various aspects of the fund including performance, investment activity and risks, according to the SEC.

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.   Here is a copy of the Complaint:

“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 P. Grippo, Regional Director of the SEC’s Philadelphia Regional Office. “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 violating antifraud provisions of the federal securities laws. 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 allows the court to 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 Mr. Grippo, all of the Philadelphia Regional Office. The litigation will be led by Judson T. Mihok and supervised by Gregory R. Bockin.   

Jeffrey Newman is a whistleblower lawyer, whose firm represents whistleblowers in healthcare fraud cases under the False Claims Act (FCA) and also under the Securities and Exchange, FINCEN and CFTC whistleblower programs. He can be reached at or at 617-823-3217