by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Oct 17 – Seven months ago, Manhattan Federal prosecutors unsealed an Indictment charging JONATHAN MOYNAHAN LARMORE with tender offer fraud and securities fraud in connection with LARMORE’s announcement of a fake tender offer to manipulate the stock price of WeWork, Inc.
They said LARMORE is alleged to have announced a false $77 million tender offer for WeWork stock, news of which immediately led investors to buy WeWork stock at fraudulently inflated prices during after-hours trading, in an effort to drive up the value of his WeWork call options and shares. On October 16, with the trial on before U.S. District Court for the Southern District of New York Judge Paul A. Engelmayer Inner City Press live tweeted to the end of the trial day - and beyond, when it got interesting, here on X for Subscribers and on Substack here. First, the thread:
AUSA: What did you mean here, "Get it live"? Witness: Get the website up. Get it indexed in Google. AUSA: And these messages? Witness: It's me and Jon Larmore, launching the web site. He asked me to call him.
AUSA: What did you discuss? Witness: The press release AUSA: Then what did you do? Witness: I found I needed a press release agency. I Googled and found BusinessWire.
AUSA: What do they do? Witness: Help get articles out to like Yahoo News and big blogs. AUSA: GX 1307, you texted Mr. Larmore about it? A: Yes AUSA: What were they proposing? Witness: To acquire over 50% of WeWork. Judge: Let's break here.
Then things began to get interesting But wait there's more: with jury gone, AUSA tells judge Larmore get a Mr. Cochrane & his family T-shirts about "Getting Larmored, meaning getting blind truck. This witness was on the yacht on Nov 3, it was said, the SEC is going to be mad
Even more: The defense lawyer objects to the AUSA talking about a couple moving their young child while drunk - home was nearby, it was a stroller, not a car, lawyer says, adding that "I've been accused of it too and I don't appreciate it." Judge: Don't go there.
More here on X for Subscribers and on Substack here
On October 17, testimony turned to the yacht off Florida (and then to bankers). From the thread:
AUSA: Where were you with Mr. Larmore? Cochrane: On the yacht, off Florida. He wanted to go out into international waters.
AUSA: Why? Cochrane: There was some trading he wanted to do there. AUSA: Did you make it? Cochrane: No, there was a small craft advisory
AUSA: What did he want to purchase? Cochrane: Call options, short term, I think. AUSA: What was your reaction? Cochrane: I didn't get it, I would have bet against WeWork because I thought the company was going down.
AUSA: What was his demeanor? Cochrane: He was like, I want to get this done. I was on my computer, trading. But not WeWork. He said he wanted to get out a press release. I hooked him up with my friend Justin [yesterday's last witness] https://matthewrussellleeicp.substack.com/p/extra-with-larmore-on-trial-for-wework
Cochrane: He asked me to try to get some social media on it. I choose two accounts with a lot of followers and DM-ed em AUSA: What is a DM? Cochrane: A Direct Message. On Instagram I asked them to talk about the press release, there's a tender offer being made
After a break, some cross examination: Larmore's lawyer: Mr. Cochrane, you testified about going into international water to do some for-ex trading - AUSA: Objection! Judge; Sustained. Misstates the testimony.
The case is US v. Larmore, 24-cr-140 (Engelmayer)
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