The duo also don't want to be right re: the wrongness of dangling pre-IPO shares of hot companies like Uber and Airbnb in potential investors' faces and then, y'know, spending the money on themselves.
Two Southern Californians took $10 million from investors by promising to buy pre-IPO shares in companies such as Airbnb and Uber, the SEC says, but they spent none of the money on that. The SEC says the men spent less than 1 percent of the money they collected on shares, and none of it on pre-IPO offerings. It sued Jaswant S. Gill and Javier Rios, who run JSG Capital Investments and two JSG affiliates, calling the operation "a classic investment scam and Ponzi scheme." They bilked nearly 200 investors with fraudulent promises of "access to alternative investment strategies that were previously only available to the one-percenters," the SEC says in its May 25 federal complaint. It seeks an emergency order because it says the men are still doing it.
Or claiming to work at Morgan Stanley and having investment experience out the ass, when their work experience was actually in the culinary arts field.
According to the SEC’s complaint filed in federal court in San Francisco, Gill in particular has brandished phony credentials, telling investors he founded his firm after serving as a managing director at Morgan Stanley. He also boasted partnerships with several Silicon Valley venture capital firms. Gill, Rios, and JSG Capital Investments are not registered with the SEC or any state regulator. Rios’s background is in food service.