New York Fund Manager Admits Multimillion-Dollar Investment Fraud Scheme

NEWARK, N.J. – A New York fund manager today admitted defrauding investors out of millions of dollars, U.S. Attorney Philip R. Sellinger announced.

Joshua Goltry, 30, of New York pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of securities fraud.

“Fraudsters operating what amounts to a Ponzi scheme shouldn't be shocked when the cash dries up,” FBI – Newark Special Agent in Charge James E. Dennehy said. “They’re usually spending exorbitant amounts of other people’s money on lavish lifestyles, with no thought to what happens next. Goltry admits lying to his clients, promising huge returns that he pulled out of thin air, and then lying several more times to secure funding so he could keep the scheme going. It should also come as no surprise that his criminal behavior led to the FBI investigating him and holding him accountable.”

According to documents filed in this case and statements made in court:

Beginning in 2020, Goltry operated and controlled JAG Cap LLC d/b/a JAG Capital, which purported to be an investment fund with a history of successful performance. From 2020 to September 2023, he solicited investments in JAG Capital by making material misrepresentations and omissions. For example, in late 2020, he sent potential investors marketing materials falsely claiming that JAG Capital’s track record included positive returns nearly every quarter from 2018 through mid-2020, with three of those quarters showing returns greater than 50 percent. He also claimed that JAG Capital outperformed three well-known stock indices nearly every quarter. In April 2021, in reliance on those and other misrepresentations, two victims invested a total of $700,000 in JAG Capital. 

Goltry also claimed to potential investors that JAG Capital’s performance exceeded 200 percent; at other times, he claimed its performance exceeded 1,000 percent. He also claimed that JAG Capital managed more than $20 million; at other times, he told potential investors that JAG Capital managed more than $50 million. Over the course of his scheme, Goltry obtained more than $3 million from investors.

Goltry claimed to investors that he would invest their money in securities for which he performed “extensive due diligence,” including “diversified tech opportunities” when in reality, he used investor money to repay previous investors and to pay for his own lifestyle, including paying for the rent on his Manhattan apartment, vacations, and personal credit card bills.  

In May 2023, after depleting nearly all investor money, Goltry sought a short-term loan from an investment company by submitting false and forged documents purporting to be from the Red Bank, New Jersey office of a national bank. In reliance on those false documents, the investment company transferred $150,000 to JAG Capital.

In a parallel action, the Securities and Exchange commission today charged 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. 

The securities fraud charge to which Goltry pleaded guilty carries a maximum potential sentence of 20 years imprisonment and a fine equal to the greatest of $250,000 or twice the gain or loss resulting from the offense. Sentencing is scheduled for Oct. 19, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.