The Securities and Exchange Commission (SEC) has charged Phoenix-based real estate investment company ArciTerra Companies LLC and its CEO, Jonathan M. Larmore, with fraud [af2bf230]. The SEC alleges that Larmore and the charged entities misappropriated over $35 million from private real estate funds and other investment vehicles managed by ArciTerra [af2bf230]. Larmore used a significant portion of the funds for personal expenses and to fund a lavish lifestyle [af2bf230]. The complaint also accuses Larmore of issuing a false press release stating that Cole Capital intended to purchase 51 percent of all minority ownership shares in WeWork, Inc. at a significantly inflated price, manipulating the stock price [af2bf230]. The SEC seeks permanent injunctive relief, the appointment of a receiver, disgorgement, civil penalties, and other relief [af2bf230].
This development adds to the ongoing debate over the regulation of new and innovative financial products and the need to balance investor protection with technological innovation [6f9d2608] [7f839aa8].