J
onathan Larmore, a Midwestern strip mall entrepreneur, has been convicted of orchestrating a massive financial scheme involving WeWork. A jury in New York found him guilty of perpetrating a fraudulent tender offer worth $77 million for the co-working company just before it filed for bankruptcy in November 2023.

    Larmore, who faces up to 20 years in prison on multiple counts, bought thousands of WeWork stock options days before his company, Cole Capital Funds LLC, made a public offer to buy WeWork shares at $9 per share. This caused the stock value to surge by 150 percent, but Larmore's timing was off, and the options expired hours before the stock rose.

    Prosecutors from the Southern District of New York alleged that Larmore stood to make millions from the deal. His attorneys plan to appeal the verdict. Larmore has a history of business dealings, having founded Arciterra Companies in 2005, which acquired over 80 properties worth more than $600 million by 2023.

    However, rising interest rates and lawsuits from vendors and investors led to financial difficulties for Arciterra. A federal lawsuit last year accused Larmore of using investor funds for personal expenses, including private jets and an extravagant birthday party for his dog. The U.S. Securities and Exchange Commission also sued him in November 2023, alleging he misappropriated over $35 million from the company.

    A court-appointed receiver took control of Arciterra's assets in December 2023 to collect rent, make loan payments, and potentially return money to investors. Larmore is scheduled for sentencing on March 4.