SEC v. JSG Capital Investments, Gill and Rios (ponzi schemes, 2016)

Settled

✓ Checked against the primary document on October 4, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sec-jsg-capital-investments-llc-et-al-ponzi-schemes-2016) by email

In May 2016 the SEC sued JSG Capital Investments, Jaswant Gill and Javier Rios over a Ponzi-like fraud. A September 12, 2017 judgment ordered the JSG entities and Gill, jointly, to pay $5.7 million in disgorgement, $172,373 in interest and a $5.7 million penalty, and a consent judgment against Rios followed on June 11, 2019.

The record

What was ordered

Civil penalty

$5.7m

Disgorgement

$7.5m

Prejudgment interest

$261k

Total relief

$13.4m

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The complaint, filed in San Francisco, alleges the two never bought pre-IPO shares, took at least $2.8 million for restaurants, shopping, casinos and other spending, and paid supposed returns to earlier investors with new investors' money. Prosecutors announced criminal charges against both the same day.

The allegations are unproven and no final relief had been ordered.

This library tags the matter as ponzi schemes because the document describes payments to earlier participants made from later participants' money. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

The judgment filed September 12, 2017 in the Northern District of California holds JSG Capital Investments, JSG Capital LLC (as named in two forms), JSG Enterprises and Gill jointly and severally liable for disgorgement of $5,712,740.52, interest of $172,372.77 and a civil penalty of $5,712,740.52; relief defendant JSG Management Group owes $105,650, which is not counted on this page. The judgment filed June 11, 2019 against Rios, entered on his consent, finds him liable for disgorgement of $1,744,520.28 and interest of $89,061.35, deemed satisfied by his criminal restitution order and by transfer of balances in three bank accounts. The money fields add the two sets of disgorgement and interest figures and the 2017 penalty. The copy of the 2017 judgment read does not show whether Gill consented. Checked on 2026-10-04.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Ponzi schemes — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2016-05-31 Litigation release published
2. 2017-09-12 Judgment against JSG entities and Gill (disgorgement, interest, penalty)
3. 2019-06-11 Consent final judgment against Javier Rios

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release
• Judgment as to Gill and JSG entities (Sept. 12, 2017)
• Final judgment as to Rios (June 11, 2019)

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.