New York Fund Manager Admits to Multimillion-Dollar Investment Fraud Scheme

Joshua Goltry defrauds investors out of millions through fraudulent investment fund, faces up to 20 years in prison.

NEWARK, N.J. – Joshua Goltry, 30, of New York, admitted today to defrauding investors out of millions of dollars through a fraudulent investment scheme, U.S. Attorney Philip R. Sellinger announced. Goltry pleaded guilty to one count of securities fraud before U.S. District Judge Katharine S. Hayden in Newark federal court.

“Joshua Goltry admitted making outlandish claims in falsifying the achievements of his purported investment fund. 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. The investing public needs to be protected from unscrupulous frauds like this, and our office will work with our law enforcement partners to make sure that happens,” said U.S. Attorney Philip R. Sellinger.

“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.”

From 2020 to September 2023, Goltry operated JAG Cap LLC, doing business as JAG Capital, which he falsely promoted as a successful investment fund. He solicited investments by making significant misrepresentations and omissions. In late 2020, Goltry sent marketing materials to potential investors, falsely claiming that JAG Capital achieved positive returns nearly every quarter from 2018 to mid-2020, with some quarters showing returns exceeding 50%. He also claimed that JAG Capital consistently outperformed three well-known stock indices. Based on these false claims, two victims invested $700,000 in JAG Capital in April 2021.

Goltry further exaggerated JAG Capital’s performance, at times claiming returns exceeding 200% and even 1,000%. He falsely stated that JAG Capital managed over $20 million, and at other times, over $50 million. In reality, Goltry used the more than $3 million obtained from investors to repay earlier investors and fund his own lifestyle, including rent for his Manhattan apartment, vacations, and personal expenses.

In May 2023, after depleting nearly all investor funds, Goltry sought a $150,000 short-term loan from an investment company using false and forged documents purporting to be from a national bank's Red Bank, New Jersey office. The investment company transferred the funds to JAG Capital based on these fraudulent documents.

In a parallel action, the Securities and Exchange Commission (SEC) charged Goltry and JAG Advisors with violating federal securities laws' antifraud provisions. Goltry and JAG Advisors agreed to settle these charges, subject to court approval, which would permanently enjoin them from violating the charged provisions and allow the court to determine the amounts of disgorgement, prejudgment interest, and civil penalties at a later date.

The securities fraud charge carries a maximum potential sentence of 20 years in prison and a fine of $250,000 or twice the gain or loss resulting from the offense. Sentencing is scheduled for October 19, 2024.

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

The case is being prosecuted by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.