The Securities and Exchange Commission has filed civil fraud charges against John Sterling Myers, Sterling Capital, LLC, and Sterling Capital Management, LLC, alleging a multi-year investment scheme that raised roughly $4 million from about 28 investors and left more than $3.6 million in investor money unaccounted for by the end of 2025. Federal prosecutors in Chicago have also returned a four-count wire fraud indictment against Myers, who is scheduled for arraignment on June 12, 2026.
What happened
The SEC complaint, filed June 5, 2026, in the U.S. District Court for the Northern District of Illinois, alleges that Myers operated an unregistered investment advisory business through Sterling Capital entities from January 2022 through at least July 2025. Myers marketed a pooled investment vehicle as a premier and exclusive fund, the complaint states. Investors were told their capital would be deployed in sophisticated strategies.
Instead, the SEC says Myers diverted at least $1.8 million of fund assets into his personal financial accounts. Those diverted funds were allegedly used for additional speculative trading and personal expenses. Some new investor money was used to repay earlier investors, creating Ponzi-like characteristics according to both the SEC and the Department of Justice.
Key facts
| Defendant | John Sterling Myers, age 41, Chicago |
| Entities | Sterling Capital, LLC; Sterling Capital Management, LLC |
| SEC case | 1:26-cv-6696 (N.D. Ill.), filed June 5, 2026 |
| Amount raised | Approximately $4 million from roughly 28 investors |
| Amount lost | More than $3.6 million; only about $398,000 returned |
| Misappropriated | At least $1.8 million diverted to personal accounts |
| Criminal charges | Four counts of wire fraud, up to 20 years per count |
How the scheme allegedly operated
Investors received fabricated quarterly account statements that showed positive performance and gains exceeding the S&P 500, the SEC alleges. In reality, the fund had suffered significant trading losses through unsuccessful options trading and other speculative positions.
Myers allegedly concealed the losses through a tax and accounting concealment scheme. The fund’s offering documents required investors to receive tax forms reporting their share of income and losses, but Myers never issued these forms. Instead, he allegedly claimed the fund’s trading losses on his own personal tax returns, keeping investors unaware of their actual financial condition.
The SEC also alleges Myers inflated the fund’s net asset value by including assets the fund did not own. These included his father-in-law’s home and his father-in-law’s retirement accounts, which were presented as fund holdings to mislead investors about the fund’s true value.
What investors should know
Pooled investment vehicles that promise exclusive access and above-market returns warrant heightened scrutiny. Myers allegedly operated an unregistered advisory business, meaning no regulatory body reviewed his strategies, fees, or custody arrangements. Investors who placed capital with Sterling Capital should review their account statements for any discrepancies and consider requesting a full accounting of transactions from their custodian.
Common mistakes victims make
- Delaying account review. Many investors wait months before examining suspicious statements, which can limit recovery options and complicate evidence preservation.
- Failing to document communications. Emails, text messages, and marketing materials can establish what was promised versus what was delivered.
- Signing releases without counsel. Some schemes require investors to sign broad liability waivers before receiving partial distributions, which can extinguish legal claims.
- Waiting too long to consult an attorney. Securities claims are subject to statutes of limitations and arbitration filing deadlines that can bar recovery if missed.
Regulatory context
The Sterling Capital case illustrates a persistent pattern in SEC enforcement: unregistered pooled vehicles marketed to retail investors through personal networks and promises of exclusivity. The SEC’s Office of Investor Education and Advocacy has repeatedly warned that unregistered investment advisers pose elevated risks because they operate outside the regulatory framework that governs custody, disclosure, and capital reserves.
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 securities 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.
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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.
