San Diego Fraudsters Promised Uber, Airbnb Shares to Attract Investors: Federal Grand Jury

SAN DIEGO, CA: Two alleged fraudsters from San Diego were indicted by a federal grand jury last week in what prosecutors call a Ponzi-like scheme.

Jaswant Singh Gill, also known as Jason Gill, the chief executive officer of JSG Capital Investments LLC in San Diego (“JSG Capital”), and Javier Carlos Rios, the strategic relationship manager at JSG Capital, were each charged May 24 in San Francisco with one count of conspiracy to commit wire fraud and one count of wire fraud, according to U.S. Attorney Brian Stretch and FBI Special Agent in Charge John F. Bennett. 

The indictment alleges that beginning in September 2014, Gill, 48, of San Diego, and Rios, 33, of National City, made false and misleading representations and promises to investors in JSG Capital, including, but not limited to, promises to purchase so-called pre-IPO shares of private companies like Uber Technologies and Airbnb using investor funds.  

Gill and Rios are alleged to have fraudulently diverted and stolen investor funds for their own personal use and benefit by, among other things, converting investor funds into cash, transferring investor funds to their own personal bank accounts, and using investor funds for personal expenses like rent, restaurants, nightclubs, hotels and retail shopping, the indictment reveals.

Gill and Rios allegedly concealed their fraud by paying earlier investors “interest” payments or so-called "lulling" payments using more recent investor funds in a manner that was consistent with a classic Ponzi scheme, according to the U.S. Attorney's Office, Northern District of California. In this manner, the duo purportedly raised in excess of $9.3 million in investor funds and are alleged to have fraudulently diverted and stolen in excess of $5.5 million.

Arrest warrants for the pair were issued May 24. 

Rios was arrested the next day by the FBI in San Diego and was scheduled to appear in court Tuesday. 

Gill was taken into custody Friday by the FBI in Nashville, Tennessee, where he was scheduled to appear in federal court Tuesday.

Prosecutors expect both cases will be moved to San Francisco where the federal grand jury indictment originated, based on a $250,000 wire transfer from a San Francisco bank.

Assistant U.S. Attorney Adam A. Reeves is prosecuting the case with the assistance of Paralegal Specialist Daniel Charlier-Smith and Legal Assistant Bridget Kilkenny. 

The prosecution is the result of an investigation by the FBI. The San Francisco Regional Office of the United States Securities and Exchange Commission provided assistance during the investigation. 

If convicted of the crimes, the they each face a maximum 20-year prison sentence, a fine of $250,000 or twice the gain or loss (whichever is greater) and asset forfeiture and restitution.