I
n a landmark case, Jonathan Moynahan Larmore has been handed a five-year prison sentence for orchestrating a brazen scheme to inflate the stock price of WeWork through a fake tender offer. The ruse, designed to enrich Larmore at the expense of unsuspecting investors, was expertly crafted but ultimately exposed by investigators.

    Larmore's plan involved creating a sham real estate investment firm, Cole Capital Funds LLC, which he used to purchase tens of thousands of cheap WeWork call options and hundreds of thousands of shares. On November 3, 2023, Larmore published a fake press release announcing a proposed acquisition of WeWork at a staggering premium, sparking a 70% surge in the company's share price.

    However, Larmore never intended to follow through on his tender offer, instead using it as a tool to artificially inflate WeWork's stock value and boost the worth of his own options. The scheme was short-lived, with WeWork filing for bankruptcy just three days later.

    U.S. Attorney Matthew Podolsky praised the efforts of the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission in bringing Larmore to justice. "This sentence sends a clear message that we will not tolerate market manipulation and will vigorously pursue those who seek to defraud investors," Podolsky said.

    In addition to his prison term, Larmore was sentenced to three years of supervised release and ordered to perform 500 hours of community service. The case is being handled by the Office's Securities and Commodities Fraud Task Force, with Assistant U.S. Attorneys Adam S. Hobson, Sarah Mortazavi, and Justin V. Rodriguez leading the prosecution.