SEC Targets Fund Adviser Jonathan Larmore in $35 Million Case

Posted on December 19th, 2023 at 1:35 PM
SEC Targets Fund Adviser Jonathan Larmore in $35 Million Case

From the desk of Jim Eccleston at Eccleston Law 

The Securities and Exchange Commission (SEC) has filed fraud charges against ArciTerra Companies LLC, a real estate investment firm based in Phoenix, and its CEO, Jonathan M. Larmore.

According to the DIWire, the SEC alleges that Larmore and entities under his control engaged in a multi-year scheme, misappropriating over $35 million from investor funds managed by ArciTerra. The complaint states that since at least January 2017, Larmore directed funds for personal use, including payments for personal credit card bills for his wife, Michelle Larmore, and children. The SEC contends that Larmore treated one of the entities as his personal bank account, financing a lavish lifestyle that involved private jets, yachts, high-end cars, and expensive residences.

The complaint further alleges that Larmore and Cole Capital Funds, founded by Larmore, released a misleading press release in November 2023. The release falsely claimed that Cole Capital intended to acquire 51% of all minority ownership shares in WeWork Inc. at $9 per share, a figure over nine times WeWork's then-current trading price. Allegedly, WeWork's stock experienced a nearly 150% surge in after-hours trading following the press release.

The complaint asserts that Larmore acquired more than 72,000 call options in WeWork at a price significantly below the stock price in the days preceding the release. His intention was to profit by executing the trades after manipulating the stock price. However, due to a delay in the release, the majority of the options expired before Larmore could exercise them.

The SEC's complaint accuses Jonathan M. Larmore, ArciTerra, and various affiliated entities under Larmore's control of violating the antifraud provisions of federal securities laws. The complaint seeks permanent injunctive relief, the appointment of a receiver, disgorgement with prejudgment interest, civil penalties, and additional relief.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

December 22, 2025
FINRA Overhauls Arbitration Rules to Rebalance Arbitrator Selection and Codify Forum Practices

The Financial Industry Regulatory Authority (FINRA) has approved significant amendments to its Codes of Arbitration Procedure designed to rebalance public arbitrator selection, increase transparency, and formalize several long-standing practices in the arbitration forum.

December 19, 2025
Industry Groups Press Senate at Advance Financial Exploitation Prevention Act

Several industry associations are urging the U.S. Senate to pass the Financial Exploitation Prevention Act, legislation that would allow mutual fund companies and their transfer agents to delay redemptions when they reasonably suspect elder financial abuse.

December 18, 2025
UBS Warns of Rising Default Risk in Private Credit

A UBS report signals that credit stress likely will intensify next year as borrowers confront inflation, elevated interest costs, and softening consumer conditions.