Dumb White Collar Criminals

[Robert Coats]

TL;DR: Guy tries to do a 'pump & dump' swindle, but is a bit late getting his horse to the starting gate. Ends up with zilch, still gets arrested for fraud.

The Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging JONATHAN MOYNAHAN LARMORE with tender offer fraud and securities fraud.

LARMORE executed his scheme in three steps. First, on or about October 6, 2023, LARMORE created Cole Capital Funds LLC (“Cole Capital”), a purported a real estate investment firm that was, in fact, merely a sham company.

Second, on or about November 1, 2023, and November 2, 2023, LARMORE spent more than $775,000 buying tens of thousands of cheap, short-dated, out-of-the-money WeWork call options (the vast majority of which were set to expire on November 3, 2023 at 4:00 p.m. EDT) and hundreds of thousands of shares of WeWork common stock.

Third, on or about November 3, 2023, LARMORE caused a press release to be published announcing that Cole Capital proposed to acquire 51% of all outstanding shares owned by minority shareholders of WeWork at a more-than-700% premium in an all-cash offer worth more than $77 million. At the time, WeWork was on the verge of bankruptcy.

Unfortunately for LARMORE, he mistimed how long it would take to properly format his press release and have it published. As a result of these delays, LARMORE’s fraudulent press release was not published—and WeWork’s share price did not accordingly rise—until approximately 5:12 p.m. EDT on or about November 3, 2023, which was about an hour after the vast majority of LARMORE’s WeWork call options had expired worthless.

[masraum]

awesome! Spent a ton of dough, didn't make any money, and got arrested (I assume federal felony).

[flatbutt]

Timing is everything.

[Steve Carlton]

Larmore money no more.

[Zeke]

One would wonder how he fronted the capital. Borrowed? CC? Or cash. You just know if he's sacamming he isn't using his money.

( I see that and wonder why spell check doesn't)

[Steve Carlton]

Originally Posted by Zeke

One would wonder how he fronted the capital. Borrowed? CC? Or cash. You just know if he's sacamming he isn't using his money.

( I see that and wonder why spell check doesn't)

https://www.ibj.com/articles/hoosier-native-real-estate-exec-arrested-on-fraud-charges

[Zeke]

^^OK, call option. Is there no equity like a bond to enter that contract? I mean IDK, I'm financially ignorant so I can say I've never lost a dime in investments. Might have lost some potential gains, but....

[Steve Carlton]

I think Larmore had equity and/or access to funds, plundered them, and set up his pump and dump scheme to regain capital. He screwed up on the pump phase. I suspect he would have got caught, anyway. He'll probably get familiar with other pumps schemes in Cell Block D soon enough.

From that link I posted. I can't read it anymore though without signing up:

"LARMORE spent more than $775,000 buying tens of thousands of cheap, short-dated, out-of-the-money WeWork call options (the vast majority of which were set to expire on November 3, 2023 at 4:00 p.m. EDT) and hundreds of thousands of shares of WeWork common stock — the latter primarily because two of LARMORE’s brokerage firms did not authorize him to trade options, but did authorize him to buy equities."