U.S. District Court appoints Applbaum as the Receiver of ArciTerra and affiliated entities, freezing certain assets of CEO Jonathan M. Larmore and certain related entities.

On December 21, 2023, the U.S. District Court for the District of Arizona appointed Allen D. Applbaum, a Partner at StoneTurn, as the Receiver of ArciTerra Companies, LLC and its related affiliates (“ArciTerra”), in connection with an alleged $35 million misappropriation of funds by Phoenix-Area Real Estate Fund Adviser Jonathan Larmore and affiliates. The SEC’s complaint, filed on November 28, 2023, alleges, among other things, that since at least January 2017, Larmore and certain charged entities misappropriated more than $35 million from private real estate funds and other investment vehicles that ArciTerra managed.

The Receivership, which will be supported by a team of multidisciplinary StoneTurn professionals with expertise in investigations, real estate, forensic accounting, data analytics, and forensic technology, was announced publicly on December 26, 2023, by the Securities and Exchange Commission (“SEC”).

In his role as the Receiver, Mr. Applbaum, supported by the StoneTurn team, will, among other responsibilities:

  • Preserve the assets of the Receivership Entities;
  • Ascertain the financial condition of the Receivership Entities and Receivership Assets;
  • Oversee and manage the Receivership Entities and Receivership Assets;
  • Prevent the encumbrance or disposal of the Receivership Assets contrary to the Receiver’s mandate;
  • Preserve the books, records, and documents of the Receivership Entities and Receivership Assets;
  • Manage litigation by and against the Receivership, the Receivership Entities and the Receivership Assets;
  • Propose for Court approval a fair and equitable distribution of the remaining Receivership Assets; and
  • Be available to respond to investor inquiries.

The Receiver has retained Archer & Greiner, P.C., as his counsel, with the representation led by New York partner, Allen G. Kadish.

In order to centralize and address inquiries of investors, creditors and other affected parties, the Receiver has established the following email address, hotline, and website:

Read the full SEC press release here, and find the order here.


Meet Allen

Applbaum Headshot

Allen D. Applbaum

Allen Applbaum, Partner with StoneTurn, has more than three decades of experience in investigations, litigation, business intelligence, corporate governance, monitoring and compliance. In connection with his management of high-profile investigations, […]