Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_23-cv-02470/USCOURTS-azd-2_23-cv-02470-1/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

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2

WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

United States Securities and Exchange 

Commission,

Plaintiff,

v. 

Jonathan Larmore, et al.,

Defendants.

No. CV-23-02470-PHX-DLR

PRELIMINARY INJUNCTION ORDER 

AND ORDER GRANTING OTHER 

ANCILLARY RELIEF

This matter comes before the Court on Plaintiff United States Securities and Exchange 

Commission’s (“SEC”) motion for a preliminary injunction order (Doc. 122) providing the 

following relief during the pendency of this case: (1) preliminarily restraining (a) Defendants 

Jonathan M. Larmore (“Larmore”), ArciTerra Companies, LLC (“ArciTerra”), ArciTerra Note 

Advisors II, LLC (“Fund II Advisors”), ArciTerra Note Advisors III, LLC (“Fund III 

Advisors”), and ArciTerra Strategic Retail Advisor, LLC (“ASR Advisor”), from violating 

Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 (“Advisers Act”) [15 

U.S.C. §§ 80b-6(1) and 80b-6(2)], and (b) Defendants Larmore and Cole Capital Funds, LLC 

(“Cole Capital”) from violating Sections 10(b) and 14(e) of the Securities Exchange Act of 

1934 (“Exchange Act”) [15 U.S.C. §§ 78j(b) and 78n(e)] and Rules 10b-5 and 14e-8

thereunder [17 C.F.R. §§ 240.10b-5 and 240.14e-8] (collectively, “Defendants”); (2) freezing 

the assets of Defendant Larmore; and (3) ordering a verified accounting by Defendant Larmore

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and Relief Defendant Marcia Larmore. Pursuant to the parties’ stipulation (Docs. 138, 141), 

and the Court’s corresponding order (Doc. 142),

IT IS ORDERED as follows:

1. Defendants Larmore, ArciTerra, ASR Advisor, Fund II Advisors, and Fund III 

Advisors are preliminarily enjoined from violating, directly or indirectly, Section 

206(1) and 206(2) of the Advisers Act [15 U.S.C. §§ 80b-6(1) and 80b-6(2)], by use 

of the mails or means and instrumentalities of interstate commerce:

a. with scienter, employing devices, schemes, or artifices to defraud clients or 

prospective clients; and

b. engaging in transactions, practices, or courses of business which operated as 

a fraud or deceit upon clients or prospective clients; while acting as 

investment advisers.

2. As provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph 

also binds the following who receive actual notice of this Order by personal service 

or otherwise:

a. Defendants’ officers, agents, servants, employees, and attorneys; and

b. Other persons in active concert or participation with Defendants or with 

anyone described in (a).

3. Defendants Larmore and Cole Capital are preliminarily enjoined from violating 

Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated 

thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of 

interstate commerce, or of the mails, or of any facility of any national securities 

exchange, in connection with the purchase or sale of any security:

a. to employ any device, scheme, or artifice to defraud;

b. to make any untrue statement of a material fact or to omit to state a material 

fact necessary to make the statements made, in the light of the circumstances 

under which they were made, not misleading; or

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c. to engage in any act, practice, or course of business which operates or would 

operate as a fraud or deceit upon any person.

4. As provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph 

also binds the following who receive actual notice of this Order by personal service 

or otherwise:

a. Defendants’ officers, agents, servants, employees, and attorneys; and

b. Other persons in active concert or participation with Defendants or with 

anyone described in (a).

5. Defendants Larmore and Cole Capital are preliminarily enjoined from violating 

Section 14(e) of the Exchange Act [15 U.S.C. § 78n(e)] and Rule 14e-8 [17 C.F.R. 

§ 240.14e-8] promulgated thereunder, in connection with any tender offer or request 

or invitation for tenders, from engaging in any fraudulent, deceptive, or 

manipulative act or practice, by:

a. making untrue statements of a material fact or omitting to state material facts 

necessary to make the statements made, in the light of the circumstances 

under which they were made, not misleading; and

b. engaging in fraudulent, deceptive, or manipulative acts or practices, in 

connection with a tender offer.

6. As provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph 

also binds the following who receive actual notice of this Order by personal service 

or otherwise:

a. Defendants’ officers, agents, servants, employees, and attorneys; and

b. Other persons in active concert or participation with Defendants or with 

anyone described in (a).

7. Except as otherwise ordered by this Court, an immediate freeze shall be placed on:

a. All monies and assets (with an allowance for necessary and reasonable living 

expenses and attorney fees to be granted only upon good cause shown by 

application to the Court with notice and an opportunity for the SEC to be 

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heard) in all accounts at any bank, financial institution or brokerage firm, all 

certificates of deposit, and other funds or assets, held in the name of, or over 

which account authority is held by, Defendant Larmore.

b. Those monies and assets that constitute or are derived from the proceeds of, 

or are otherwise related to, the activities set forth in the Complaint in 

accounts at any bank financial institution or brokerage firm, all certificates 

of deposit, and other funds or assets, including real or personal property, held 

in the name of, for the benefit of, or over which account authority is held by 

Defendant Larmore, include but are not limited to the accounts listed below:

City National Bank

Account Account Name

XXXXXX6693 Jonathan M Larmore; aka 

Sole and Separate

KS StateBank

Account Account Name

XXXXXX0406 Jonathan M Larmore or 

Michelle A Larmore

XXXXXX0883 Jon Larmore - Savings 

XXXXXX6141 Jonathan M Larmore

XXXXXX7488 Jon Larmore - Sole & Sep

XXXXXX8836 Wawasee Family Investments 

LP

Ridge Clearing & Outsourcing

Account Account Name

XXXXXX7728 Jonathan Larmore

Wells Fargo

Account Account Name

XXXXXX1161 Michelle A Larmore or 

Jonathan M Larmore

XXXXXX2885 Jonathan M Larmore or 

Michelle A Larmore

XXXXXX5880 Jonathan M Larmore or 

Michelle A Larmore

Huntington National Bank 

Account Account Name

Jonathan Larmore

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Brokerage Accounts for Larmore

Financial Institution

JP Morgan Securities LLC

City National Securities

TradeStation Securities, Inc

TD Ameritrade, Inc. and TD 

Ameritrade Clearing, Inc.

Fidelity

SoFi Capital Advisors, LLC

WeBull Financial LLC

Ally Invest Securities f/k/a 

Ally Invest Group Inc.

Apex Clearing Corporation

Scott Trade

Entities

Morrison Island, LLC

North East Wawassee, LLC

Labalme Trail, LLC

Lutheran Eye Care, LLC

HV Gardens, LLC

AT LC 87, LLC

JML BC G400, LLC

c. The following bank account is not subject to the asset freeze and is to be used 

only for court-approved reasonable living expenses and attorney fees:

Park National Bank

Account Account Name

XXXXXX7227 Jonathan M Larmore

8. Any bank, financial institution or brokerage firm holding such monies and assets 

described above, that receives actual notice of this Order, by personal service or 

otherwise including facsimile transmissions, electronic mail, or overnight delivery 

service, shall hold and retain within its control and prohibit the withdrawal, removal, 

transfer, or other disposal of any such funds or assets, except as otherwise ordered 

by this Court. 

9. Defendant Larmore and Relief Defendant Marcia Larmore shall file with this Court 

and serve upon the SEC, within 14 days from entry of this Order, a verified written 

accounting signed under penalty of perjury, of their assets and their use of the 

Receivership Entities’ assets, by email (sent to hanjo@sec.gov) on the SEC’s

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counsel, John Han, Securities and Exchange Commission, 44 Montgomery St., 

Suite 2800, San Francisco, California 94104.

10. This Order is binding upon Defendants and Relief Defendants, and each of their 

respective officers, agents, servants, employees, attorneys-in-fact, subsidiaries, 

affiliates, and those persons in active concert or participation with them who receive 

actual notice of this Order by personal service, facsimile service, or otherwise.

11. A separate order will address the SEC’s request for continuation of the appointment 

of the Receiver, asset freezes, and an anti-litigation injunction (Doc. 122-2), 

following further briefing and argument scheduled for May 8, 2024.

Dated this 22nd day of April, 2024.

Douglas L. Rayes

United States District Judge

Case 2:23-cv-02470-DLR Document 143 Filed 04/22/24 Page 6 of 6