Investors in a St. Louis-area mall are tired of waiting for payments while Arciterra Companies owner Jonathan Larmore allegedly spent the money on a $100,000 birthday party for a private jet and a dog.
Investors file federal lawsuit accusing owners of misusing investor cash to fund their personal lifestyles, Bloomberg Report.
While the company owns dozens of properties in the Midwest, the lawsuit centers on the Belleville Crossing Mall in St. Clair County, Illinois. Funds from approximately 175 investors were used for this particular purchase, the lawsuit alleges.
More than 2,000 investors in Arciterra have not received payments since 2019, the lawsuit said. Investors accused Arciterra of trying to “wait” for its backers to forego funding or die.
Arciterra raised about $187 million in more than 19 investments over the past decade, the suit says. The money was allegedly used for Larmore’s extracurricular activities, including the purchase of a Cessna Citation and a Gulfstream G400. The suit also accuses Larmore of throwing a $100,000 birthday party for his Boston terrier.
Meanwhile, Belleville Crossing has fallen into disrepair, according to the lawsuit. Problems include overgrown weeds, overflowing trash and leaking roofs. Investors also said lease renewals and bills were not being paid in a timely manner.
Lamour did not comment on the specific allegations, saying only in a text message that he would “bring the truth out.”
read more
In addition to the federal lawsuit, Arciterra faces several other lawsuits and recently defaulted on some properties, according to a separate lawsuit.
He is also in the process of divorcing his wife, who says the couple has $50 million in assets, including jewelry and luxury cars. His wife also said in the divorce filing that Larmore may be under investigation by the SEC, but the commission has not confirmed that.
— holden warner
