The Securities and Exchange Commission has charged Chicago-based investment adviser John Sterling Myers and his firms Sterling Capital, LLC and Sterling Capital Management, LLC with operating a multi-year pooled investment fraud that allegedly raised approximately $4 million from at least 28 investors and caused more than $3.6 million in losses or unaccounted funds. The SEC filed the civil complaint in the U.S. District Court for the Northern District of Illinois in June 2026 as part of an aggressive enforcement push against offering fraud and pooled vehicle misconduct.
What happened
Between 2022 and 2025, Myers allegedly promoted what he called an exclusive and premier pooled investment vehicle to retail investors seeking steady returns. The SEC contends that Myers commingled investor funds with his own money, diverted capital to personal accounts, and used new investor contributions to make redemption payments to earlier participants in a classic Ponzi-like structure. The complaint describes a pattern where promised returns were not generated by any legitimate investment strategy but rather by the continued inflow of new capital.
Key facts
| Defendant | Entity | Alleged Conduct | Investor Loss |
|---|---|---|---|
| John Sterling Myers | Sterling Capital, LLC; Sterling Capital Management, LLC | Pooled investment fraud, commingling, misappropriation | $3.6M+ |
The scheme and its impact on investors
Myers allegedly marketed the fund as a low-risk, exclusive opportunity available only to a select group of investors. This exclusivity tactic is a common red flag in fraud cases because it prevents targets from discussing the investment with broader networks or seeking independent verification. The SEC alleges that Myers provided fabricated account statements showing consistent positive returns while the underlying assets were either nonexistent or had already been diverted.
At least 28 individual investors are believed to have contributed capital. Many were retirees or near-retirees who relied on the promised income stream for living expenses. The SEC is seeking injunctions, disgorgement, and civil penalties against Myers and both Sterling entities. Parallel criminal charges have not been announced as of the filing date, but the case remains under investigation.
Red flags investors should recognize
Pooled investment vehicles marketed as exclusive or members-only deserve heightened scrutiny. Any adviser who discourages independent verification, commingles personal and client funds, or provides statements that cannot be independently confirmed through a third-party custodian is operating outside standard industry practice. The use of new investor money to pay earlier investors is the hallmark of a Ponzi scheme and is illegal regardless of whether the promoter files disclosures.
What affected investors can do now
Investors who believe they suffered losses in connection with Sterling Capital or John Sterling Myers may have claims for recovery through the SEC enforcement process, a private arbitration, or a civil lawsuit. Documenting all communications, account statements, and transfer records is the critical first step in any recovery effort.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
- Visit htattorneys.com for a free consultation
Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
This article is for informational purposes and does not constitute legal advice. Investors should consult a qualified securities attorney to discuss their specific circumstances.
For a related angle, review John Sterling Myers and Sterling Capital Face SEC Fraud Charges Over $3.6 Million Investor Losses.
Investors tracking this theme can also read SEC Creates Retail Fraud Working Group to Target Investment Scams in July 2026.
For more context, see SEC Fines Canaccord Genuity $20 Million for Anti-Money Laundering Program Failures.
