News Release

INDIANA — The Securities and Exchange Commission has announced fraud and stock manipulation charges against Phoenix-based real estate investment company ArciTerra Companies LLC and its CEO, Jonathan M. Larmore, a Lake Wawasee resident, for engaging in a multiyear scheme to misappropriate millions of dollars of investor funds from investment vehicles that ArciTerra managed. The SEC also charged several entities controlled by Larmore for their roles in the scheme.

Other members named in the complaint are Larmore’s ex-wife, Michelle Larmore; his mother, Marcia Larmore; and nine businesses which are owned by Larmore and family.

ArciTerra Companies LLC’s Punta Gorda-based Fishermen’s Village was not included in the December receivership, as it was included in an independent receivership in October. In addition to losing control of his businesses, Larmore will have other assets frozen as well.

The SEC’s complaint, filed on Tuesday, Nov. 28, alleges that, “since at least January 2017, Larmore and the charged entities misappropriated more than $35 million from private real estate funds and other investment vehicles that ArciTerra managed. Larmore allegedly used a substantial portion of the misappropriated funds to pay for his family members’ personal expenses and to fund a lavish lifestyle of private jets, yachts and expensive residences.”

“As the complaint alleges, instead of protecting client assets, Larmore and his related entities took advantage of investor trust for his and his family’s personal gain,” said Andrew Dean, co-chief of the Asset Management Unit. “Protecting investors from fraud by their financial advisers is a priority for the SEC, as is protecting the market from false press releases aimed at manipulating the stock of a publicly traded company for personal gain and leaving unknowing investors to lose out.”

Larmore and ArciTerra found themselves in hot water back in 2006 when it gained $45 million from over 1,000 investors for two private funds for which Larmore owned fiduciary duties. Investors would go on to complain the properties acquired by ArciTerra were run down. As a fiduciary, it was Larmore’s obligation to protect and responsibly invest the funds.

Larmore continued to find himself in controversy when he announced his plans to expand Fishermen’s Village by constructing a hotel and condominium buildings. Immediately, locals were resistant to Larmore’s blueprints. The Florida town locals joined together to form a group whose objective was to block Punta Gorda from being able to construct tall buildings.

The SEC’s complaint also alleges that Larmore and Cole Capital Funds LLC, an entity Larmore formed and controlled, issued a press release in November 2023 falsely stating that Cole Capital intended to purchase 51% of all minority ownership shares in WeWork, Inc., an unrelated public company, at $9 a share, more than nine times WeWork’s then-current trading price.

According to the SEC’s complaint, WeWork’s stock rose close to 150% in after-hours trading shortly after the press release was issued. The complaint alleges that Larmore purchased more than 72,000 call options in WeWork at a price far below the stock price in the days before the press release was published, hoping to execute the trades at profit after manipulating the stock price.

However, due to a delay in the issuance of the press release, most of the options expired before Larmore could exercise them.

Larmore’s preliminary injunction hearing is scheduled for Tuesday, Feb. 27.