The Securities and Exchange Commission has permanently barred Joshua Charles Avikzer Goltry, a 30-year-old New York fund manager, from working in the securities industry following a fraudulent scheme that cost investors at least $3 million.
The SEC order, released November 25, became official roughly four months after Goltry pleaded guilty to securities fraud in federal court and about 16 months after he initially faced civil charges. The action represents an effort to keep Goltry out of the advisory space, where he and the fund firms he set up previously operated without proper regulatory oversight.
The SEC charged Goltry in June last year.
Goltry founded JAG Cap, an investment fund that he managed through his firm JAG Capital Advisors, which was never registered with the SEC. Beginning in January 2020, he spent more than three years orchestrating what authorities characterized as an elaborate deception targeting retail investors who believed they were placing money with a legitimate, experienced manager.
As detailed in separate indictment by the Department of Justice last year, the scheme involved multiple layers of misrepresentation. Goltry circulated marketing materials claiming the fund had achieved double-digit returns in nearly every quarter dating back to 2018, with some quarters allegedly generating gains exceeding 50%. He further told prospective investors the fund had amassed $20 million to $50 million in assets under management.
In reality, both figures were invented. He also claimed fund performance exceeding 200% in some instances and surpassing 1,000% in others – numbers disconnected from any actual trading activity.
According to the SEC order, "Goltry orchestrated a fraudulent scheme through JAG Advisors to defraud investors in the JAG Fund of at least $3 million by, among other things: misrepresenting his past performance, JAG Fund's trading activity and performance, and JAG Fund's risk management protocols; fabricating account statements and other documents; and misappropriating client funds for his own use."
According to a filing from the United States Attorney for the District of New Jersey, one victim invested roughly $500,000 in JAG Capital, while another placed $200,000.
But that money never reached securities markets as promised. Instead, Goltry deployed fresh capital to pay earlier investors – a hallmark of Ponzi-like schemes – while diverting substantial sums to fund a lavish lifestyle.
"Goltry used the stolen proceeds to cover personal expenses, personal travel for himself and his girlfriend, rent, jewelry, and general living expenses," the SEC order noted.
By May 2023, with investor funds nearly depleted, Goltry applied for a $150,000 short-term loan by submitting forged documents purporting to originate from a New Jersey bank office. The loan was approved and disbursed before the forgery was unraveled.
The SEC barred Goltry from associating with any broker, dealer, investment adviser, or related entity. Any future attempt to reenter the industry would require approval and could be conditioned on resolving prior obligations, including restitution and any court-ordered penalties.
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