Two California men have been charged with defrauding $10 million from retail investors by promising exclusive investment opportunities “previously only available to the one-percent.”
The SEC filed a complaint against Jaswant “Jason” Gill, founder and CEO of JSG Capital Investments, and Javier Rios. Both men have been accused of pocketing at least $2.8 million in investor funds, using at least some of investors’ money to pay for meals at high-end restaurants, trips to Las Vegas, and tickets to professional sporting events.
JSG Capital billed itself as a “boutique advisory firm” with offices in Los Angeles, San Francisco, and New York. Investors were told that they could secure annual returns of up to 60% by investing in tantalizing pre-IPO stocks including Airbnb, Uber, and Alibaba.
The JSG Capital website enticed investors by promising access to alternative investment strategies previously reserved for the ultra-rich, and touting their Wall Street experience – Gill’s biography claimed he had been a managing director at Morgan Stanley.
According to the SEC, Morgan Stanley has never employed Gill and Rios has a background in the food service industry, not financial services.
Rios and Gill also have been charged with criminal wire fraud in addition to operating a Ponzi scheme. Less than 1% of investor funds were actually transferred to JSG trading accounts.
Call a Los Angeles Securities Fraud Attorney Today
If you invested with Gill, Rios, or JSG Capital, you may have certain legal rights that require your immediate attention.
Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.