Jonathan Larmore, a Valley real estate CEO, faces charges from the U.S. Securities and Exchange Commission. The charges were announced on Nov. 29 — the day before Larmore's Arciterra Companies LLC and Arciterra Group LLC filed for Chapter 11 bankruptcy protection in Arizona.
The SEC alleges that Larmore’s entities misappropriated more than $35 million since January 2017.
ArciTerra Companies, a real estate investment, development and management firm, was established in 2005 by Larmore. According to the allegations from federal investigators, starting in 2006 Larmore and ArciTerra raised approximately $45 million from more than 1,000 investors for two private funds, ArciTerra Note Fund II LLC and ArciTerra Note Fund III LLC.
In 2017, Larmore allegedly began diverting those funds to a separate entity that he controlled with his mother, Marcia Larmore. The “slush fund" was used to fund a lavish lifestyle, which included private jets, yachts, and expensive residences, the SEC alleges.
