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SEC Alleges Illinois Investment Adviser Misappropriated Investor Funds and Concealed Losses

Posted on June 25th, 2026 at 11:10 AM
SEC Alleges Illinois Investment Adviser Misappropriated Investor Funds and Concealed Losses

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

According to a litigation release published on SEC.gov, the Securities and Exchange Commission (SEC) has charged John Sterling Myers and his firms, Sterling Capital, LLC and Sterling Capital Management, LLC, with orchestrating a multi-year fraud involving investor funds held in a pooled investment vehicle.

The SEC alleges that from January 2022 through at least July 2025, Myers and his firms raised approximately $4 million from about 28 investors.

According to the complaint, Myers concealed substantial losses and depleted fund assets through unsuccessful trading activity and personal expenditures. Allegedly, more than $3.6 million of investor money has been lost.

The SEC further alleges that Myers distributed fabricated quarterly account statements that portrayed strong investment performance and gains that exceeded those of the S&P 500.

In addition, the SEC alleges that Myers failed to provide investors with required tax documentation that would have disclosed their share of the fund's losses. Instead, the complaint claims that Myers reported the trading losses on his own personal tax returns without informing investors.

The complaint also alleges that Myers misappropriated at least $1.8 million by transferring fund assets into personal financial accounts. The SEC claims that Myers used those funds for additional trading activity and various personal expenses.

As noted on SEC.gov, the SEC seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties against all defendants.

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec enforcement, securities fraud, investment adviser fraud, misappropriation of funds

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