JSG Capital Investments, LLC – SEC Files Complaint | Goodman & Nekvasil P.A. May Recover Investor Losses
Securities and Exchange Commission Files Complaint Against JSG Capital Investments, LLC
ACCORDING TO THE SEC:
The Commission brings this action to halt an ongoing fraudulent securities offering and Ponzi scheme perpetrated by defendants Jaswant S. Gill and Javier Rios through Gill’s eponymous investment firm JSG Capital Investments, LLC (“JSG”) and affiliated entities JSG Capital, LLC, JSG Capital LLC, and JSG Enterprises, LLC (collectively, the “JSG Entities”).
Since September 2013, Gill and Rios have fraudulently raised approximately $10 million from nearly 200 investors in the JSG Entities by promising guaranteed, fixed returns of up to 60 percent annually through purported investment in highly coveted, pre-initial public offering (“pre-IPO”) shares of companies such as Airbnb, Alibaba, and Uber, and other investments in the stock market.
Gill and Rios solicit middle-class investors with promises of “access to alternative investment strategies that were previously only available to the one-percenters.” In so doing, Gill and Rios falsely portray JSG as an authentic and prosperous investment firm, and lull investors into believing that their money is safe and secure. For example, defendants claim that investor money is invested in the stock market, and JSG’s website touts its “customized asset allocation strategy,” actively-managed client portfolios “using a broad array of securities” and JSG’s performance relative to well-known benchmarks. JSG’s investor contracts represent that the investments are secured by assets held at established brokerage firms, and that investors are additionally secured against losses by an insurance policy. Gill has also touted his background as a Managing Director at Morgan Stanley and supposed “close ties” with well-known Silicon Valley venture capital firms that provided JSG access to shares in popular “pre-IPO” companies.
In reality, JSG is a classic investment scam and Ponzi scheme. Gill and Rios transferred less than 1 percent of investor funds to JSG Entity brokerage accounts, and no “pre-IPO” company shares were ever purchased. The JSG Entities do not hold any accounts at one of the brokerage firms, are not a policyholder of the insurance policy they claim to be, and JSG’s account at the other brokerage firm has never held more than $5,000. Gill has never worked for Morgan Stanley, and neither JSG nor Gill has any relationship with any of the Silicon Valley venture capital firms touted on JSG’s website.
Instead, Gill and Rios have used millions in investor money to fund their lifestyle, and to make Ponzi payments to earlier JSG investors. Gill has received over a million dollars of investor money in cash withdrawals, transfers to his personal bank account, the monthly rent at his personal residence, and the use of an expense account to pay for excursions to high-end restaurants and clubs, jaunts to Las Vegas casinos, gentlemen’s clubs, professional sporting events, high-end hotels, and luxury retail stores. Rios has received at least $1.7 million from the scheme and spent additional investor money from a JSG-affiliated account to pay the monthly rent at his personal residence. In addition, Gill and Rios used over $500,000 in investor funds to pay for excursions to restaurants, nightclubs, and luxury hotels, transportation including airfare and car service, and purchases at retailers for furniture, clothing, and other accessories. To further the scheme, Gill and Rios used money from new investment into JSG to pay existing investors. Since September 2013, defendants have made approximately $4.2 million in Ponzi-like payments to JSG investors.
The defendants continue to solicit new investors to join the scheme. To halt their fraud and protect current and future investors, the Commission seeks emergency ex parte relief in this action to enjoin the defendants from continuing their unlawful conduct, freeze assets, and secure other equitable relief.
Investors in JSG Capital Investments, LLC May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested in JSG Capital Investments, LLC, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred investment losses in JSG Capital Investments, LLC would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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