Jonathan Moynahan Larmore, 51, from Syracuse, Indiana, has been sentenced to five years in prison for securities fraud and tender offer fraud, the U.S. Attorney’s Office for the Southern District of New York announced on Tuesday. Larmore, the former CEO of Arciterra Companies LLC, was convicted of manipulating the stock price of WeWork, a leading real estate company.
In the fall of 2023, Larmore orchestrated a fraudulent scheme by creating a fake real estate investment firm called Cole Capital Funds LLC. He issued a deceptive press release on November 3, 2023, claiming that Cole Capital intended to acquire a majority of WeWork’s shares in an all-cash offer worth more than $77 million. The offer was presented as a 700% premium over WeWork’s market price, causing the company’s stock price to soar by over 150%.
Larmore had purchased tens of thousands of WeWork call options and shares before the press release, intending to profit from the artificially inflated stock price. However, just days later, on November 6, 2023, WeWork filed for Chapter 11 bankruptcy, and Larmore never followed through with the tender offer.
U.S. Attorney Matthew Podolsky stated, “Jonathan Larmore treated the stock market like a game he could rig to obtain instant riches at the expense of innocent investors.” He added that Larmore’s sentencing demonstrates the ongoing commitment of the U.S. Attorney’s Office to hold those who manipulate markets accountable.
In addition to his five-year prison sentence, Larmore was also ordered to serve three years of supervised release and perform 500 hours of community service. This case serves as a reminder of the severe consequences for those who engage in fraudulent market manipulation.
