Investors in a St. Louis-area shopping center are tired of waiting for their payments while Arciterra Companies owner Jonathan Larmore allegedly spends their money on private jets and a dog’s $100,000 birthday party.
Investors filed a federal lawsuit, accusing the property owner of misusing investor cash to fund his personal lifestyle, Bloomberg reported.
While the firm owns dozens of properties in the Midwest, the lawsuit is centered on an Illinois strip mall, Belleville Crossing in St. Clair County. Money from roughly 175 investors was used for that particular purchase, the suit stated.
More than 2,000 investors in Arciterra haven’t received payments since 2019, the lawsuit alleges. The investors accuse Arciterra of trying to “wait out” its funders to give up on getting their money, or to die.
Arciterra raised roughly $187 million in the past decade through more than 19 investment offerings, the lawsuit claims. That money has allegedly gone towards extracurriculars for Larmore, including purchases of a Cessna Citation and a Gulfstream G400. The lawsuit also alleges Larmore threw a $100,000 birthday party for his Boston Terrier.
Meanwhile, Belleville Crossing has fallen into disrepair, according to the suit. Issues include overgrown weeds, overflowing trash and leaky roofs. The investors also said lease renewals and bill payments haven’t happened in a timely manner.
Larmore didn’t comment on specific allegations, only saying via text that he’ll “let the truth come out.”
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Besides the federal suit, Arciterra is also facing a handful of other lawsuits and recently defaulted on some properties, according to a separate lawsuit.
He is also in the midst of a divorce from his wife, who has stated the couple has $50 million in assets, including jewelry and luxury cars. His wife has also said in divorce filings that Larmore may be under SEC investigation, though the commission hasn’t confirmed.
— Holden Walter-Warner