December 26, 2023

A temporary restraining order was issued on December 21 against ArciTerra Companies LLC and its CEO Jonathan M. Larmore, along with Cole Capital Funds LLC, an entity formed by Larmore. Larmore and other charged entities misappropriated more than $35 million from private real estate funds and other investment vehicles to fund his family’s lavish lifestyle. In another scheme, Larmore issued a press release from Cole Capital Funds, announcing they were buying 51% of WeWork’s minority ownership shares at nine times the current trading price. Not disclosed was that Larmore had purchased more than 72,000 call options in the days prior to the press release. Larmore’s intent was to earn a windfall on the options; instead, the press release was delayed so most of the call options expired before he could exercise them. SEC

Tagged in: Financial and Investment Fraud, Market Manipulation and Trading Violations, Misrepresentations, Regulatory Violations, Securities Fraud,