The SEC and DOJ Allege a Multi-Year Investment Fraud Scheme

The SEC and DOJ have launched parallel civil and criminal actions against Chicago-area investment advisor John Sterling Myers, alleging that he orchestrated a $3.6 million Ponzi scheme through Sterling Capital Investments, LLC and related entities.

If you lost money investing with John Sterling Myers, Sterling Capital Investments, LLC, or Sterling Capital Management, LLC, you may wish to explore your legal options and recovery rights.

According to a federal criminal indictment and a parallel SEC civil complaint filed in June 2026, Myers allegedly solicited investments from at least 28 investors across multiple states while making false representations regarding the performance and financial condition of his investment program.

(Sources: SEC Complaint – www.sec.gov/litigation/litreleases & U.S. Department of Justice – www.justice.gov)

The Illusion of Wall Street Expertise

According to federal authorities, Myers promoted Sterling Capital Investments as an exclusive investment opportunity and represented himself as an experienced investment professional capable of generating substantial returns.

The SEC alleges that Myers touted annual returns ranging from approximately 16% to 54% and claimed his investment strategy consistently outperformed major market benchmarks.

Federal authorities further allege that investors entrusted approximately $4 million to Myers and his entities between 2022 and 2025.

(Source: SEC Litigation Materials – www.sec.gov)

Trading Losses, Personal Spending, and Allegedly Fabricated Assets

According to the SEC and federal prosecutors, the reality of the investment program was dramatically different from what investors were allegedly told.

Regulators allege that Myers suffered significant trading losses while continuing to solicit investor funds and provide investors with account statements that did not accurately reflect the financial condition of the investment program.

Authorities further allege that:

  • Approximately $1.8 million of investor funds was diverted to Myers’ personal accounts.
  • Funds from newer investors were allegedly used to satisfy withdrawal requests from earlier investors.
  • Investors received account statements that allegedly overstated account values and performance.
  • The fund’s reported net asset value was allegedly inflated through the inclusion of assets that were not owned by the investment program.

Federal prosecutors specifically allege that Myers falsely represented certain personal and family assets as investment-fund assets in order to create the appearance of financial strength.

(Source: U.S. Department of Justice Criminal Indictment – www.justice.gov)
(Source: SEC Enforcement Action – www.sec.gov)

SEC Enforcement Action and Federal Criminal Charges

Federal authorities have now moved forward on both civil and criminal fronts.

On June 4, 2026, a federal grand jury in the Northern District of Illinois returned an indictment charging Myers with multiple counts of wire fraud.

The following day, the SEC filed a civil enforcement action seeking permanent injunctions, disgorgement, prejudgment interest, and civil monetary penalties.

According to regulators, neither Myers nor his Sterling Capital entities were registered investment advisers during the relevant period, leaving investors without many of the protections and oversight requirements that accompany registered investment advisory firms.

(Source: U.S. Department of Justice Press Release – www.justice.gov)
(Source: SEC Enforcement Action – www.sec.gov)

What Investors Should Know

Investment fraud schemes often collapse when withdrawal requests begin to exceed incoming investor deposits.

When that occurs, investors are frequently left attempting to determine whether recovery may be available through litigation, receivership proceedings, third-party claims, financial institutions, or other avenues.

The filing of SEC and DOJ actions does not automatically return investor funds. However, regulatory findings and court proceedings can often provide valuable information for investors evaluating potential recovery options.

Did You Lose Money with John Sterling Myers or Sterling Capital?

If you invested with John Sterling Myers, Sterling Capital Investments, LLC, or Sterling Capital Management, LLC and suffered losses, Sonn Law Group is investigating potential claims arising from the alleged misconduct.

Our firm represents investors nationwide in matters involving Ponzi schemes, investment adviser fraud, unsuitable investments, securities fraud, and other investment-related losses.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Past results do not guarantee future outcomes.