Thelife- An Illinois mall owner is being sued by his investors over mismanagement of funds.
- The investors say the mall owner used their cash to fund his life of luxury.
Investors are suing the owner of a mall in Illinois, accusing him of using their cash to splash out on jets, luxury properties, and a lavish birthday party for his dog.
The lawsuit, which was first reported by Bloomberg, alleges that Jonathan Larmore, and other staff at Arciterra – a property company that owned Belleville Crossing mall in Belleville, Illinois – had breached their duties when they transferred some of the investors' money to themselves "to fund their unbelievably lavish lifestyle."
None of the company's more than 2,000 investors have received dividend payments since August 2019, and some haven't received payments since 2011, it said.
Meanwhile, Larmore, his wife, and his mother collectively own approximately 12 houses throughout the US, including two recently remodeled "at tremendous expense" and four on an exclusive lake in Indiana. They also own a Cessna Citation jet, a Gulfstream G400, and have bought multiple cars and boats – including a $250,000 wake surf boat and a $2.5 million motor yacht, the plaintiffs said.
"They frequently throw lavish parties costing six figures. In the summer of 2022, they threw such a six-figure party, flying in friends and family on their private aircraft. One such party was to celebrate the birthday of their Boston Terrier, Spike," they added.
Insider contacted Arciterra and Jonathan Larmore via LinkedIn for comment but did not immediately hear back.
Arciterra says that it owns more than 80 properties in 24 states and has raised approximately $187 million in capital from outside investors. Bloomberg reported that Arciterra has recently been sued by construction companies, a commercial cleaner, and the city of Milwaukee.
Belleville Crossing mall was one of its properties. The plaintiffs say that because the owners diverted company assets, they failed to pay necessary vendors and allowed the Belleville Crossing mall to fall into "a state of disrepair."
"Tenants complain of three-foot-tall weeds in planting beds, over-flowing and accumulating trash throughout the property, roof leaks not being addressed allowing ongoing water penetration damage as well as the complete absence of snow and ice removal," they said.
The mall was ultimately sold to an investor in a tax lien sale in November 2022 "due to Defendants' failure to timely pay property taxes," they added.