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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW Picking a president ... Ticket availability ... Conifer lecture Friday, hike Saturday ... Picking a president ... Ticket availability ... Conifer lecture Friday, hike Saturday ... A hedge fund sold fake pre-IPO Uber shares and then blew the money on strip clubs and sports, claims SEC Comment By Biz Carson DailyTidings.com By Biz Carson Posted Jun. 6, 2016 at 5:58 PM By Biz Carson Posted Jun. 6, 2016 at 5:58 PM » Social News REUTERS/Jason Lee Investors are clamoring for a piece of Uber, but one group stands accused of capitalizing on it in the wrong way. A hedge fund stands accused by the SEC and the DOJ of selling investors fake pre-IPO shares of Uber, Airbnb, and Alibaba before blowing the money on an elaborate lifestyle, according to the complaint . On May 31, the Department of Justice charged JSG Capital Investments' CEO and founder Jason Gill, who also goes by the name Jaswant Singh Gill, and his colleague Javier Carlos Rios for allegedly raising more than $9 million in investor funds and then diverting or stealing millions of it, according to the SEC, which assisted in the case. That money went to fund an elaborate lifestyle, including trips to Vegas, visits to "gentlemn's clubs" and attending professional sporting events, the complaint said. Along the way, Gill and Rios did repay small amounts to earlier investors using new investor money as "interest payments" to not arouse suspicion, "in a manner that was consistent with a classic Ponzi scheme," the DOJ stated . However, there's no evidence that the group ever purchased any pre-IPO shares of any tech company, including Uber, according to the DOJ. Ride-hailing company Uber is one of the most valuable private companies, but it is notorious for having tight controls over its shares and it dislikes unauthorized shares being on the market. Other funds that have tried to create groups to purchase as much as $10 million in preferred shares in Uber's latest round have decided not to go down that path citing a lack of investor interest, according to a Bloomberg report . NOW WATCH: We tried the 'Uber-killer' that just landed a $300 million investment from Volkswagen See Also: Uber is making changes to its app to make drivers happier Sorry, Travis Kalanick, but the anti-Uber coalition is more than just 'an idea' There�s something other than desperation making car companies invest in Uber-like startups, says this CEO SEE ALSO: Sorry, Travis Kalanick, but the anti-Uber coalition is more than just 'an idea' By Biz Carson DailyTidings.com By Biz Carson Posted Jun. 6, 2016 at 5:58 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with DailyTidings.com Facebook Twitter RSS Back to top ERROR: Object template cce_3 is missing! ERROR: Object template cce_3 is missing! ERROR: Object template cce_3 is missing! ERROR: Object template cce_3 is missing! ERROR: Object template cce_3 is missing! ERROR: Object template cce_3 is missing! ERROR: Object template cce_3 is missing! ERROR: Object template cce_3 is missing! Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2016 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. DailyTidings.com | P.O. Box 1108, Medford, OR 97501