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New York Fund Manager Admits to Investment Scam
Joshua Goltry, a 30-year-old New York fund manager, has pleaded guilty to defrauding investors out of millions of dollars, according to the U.S. Attorney’s Office for the District of New Jersey.
According to court documents, 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. However, he made material misrepresentations and omissions to potential investors, including false claims about JAG Capital’s track record and its ability to outperform well-known stock indices.
In late 2020, Goltry 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.
Goltry’s scheme continued until September 2023, when he obtained more than $3 million from investors. However, 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.
U.S. Attorney Philip R. Sellinger stated, “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 FBI’s Newark office also investigated Goltry’s scheme and praised the U.S. Attorney’s Office for bringing him to justice. “Fraudsters operating what amounts to a Ponzi scheme shouldn’t be shocked when the cash dries up,” said FBI Newark Special Agent in Charge James E. Dennehy. “They’re usually spending exorbitant amounts of other people’s money on lavish lifestyles, with no thought to what happens next.”
Goltry’s guilty plea marks a significant victory for investors who were defrauded by his scheme. The Securities and Exchange Commission has also charged Goltry and JAG Advisors with violating antifraud provisions of the federal securities laws, and a settlement has been reached in a parallel action.
The U.S. Attorney’s Office for the District of New Jersey will continue to work with law enforcement partners to protect the investing public from unscrupulous frauds like Goltry. Goltry is scheduled to be sentenced on June 14, 2024.
Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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