SEC Charges John Sterling Myers of Sterling Capital With Fraud, Misappropriation, and Fabricated Returns

When a financial adviser fabricates account statements and quietly moves client money into personal accounts, investors have no way of knowing. The reports they receive show steady growth and by the time the truth surfaces, the damage is already done.

That is the scenario the Securities and Exchange Commission alleges played out at Sterling Capital, LLC and Sterling Capital Management, LLC. On June 5, 2026, the SEC filed a civil complaint against John Sterling Myers and his two entities, accusing them of a multi-year fraud targeting investors across multiple states.

Because Myers was not registered with the SEC, claims directly against him fall outside the scope of securities arbitration. However, if a licensed broker, financial adviser, or registered firm referred you to Sterling Capital, recommended the investment, or played any role in directing funds to Myers, you may have independent legal options against that party.

What Did the SEC Allege Against John Sterling Myers?

According to the SEC’s complaint and Litigation Release No. 26562, issued June 8, 2026, the Commission accuses John Sterling Myers and his two entities of violating the antifraud provisions of the federal securities laws. The SEC alleges that:

• Fabricated account statements: Myers allegedly created and distributed fake quarterly account statements showing gains of up to 54% when the underlying investments had actually lost money.
• Misappropriation of investor funds: The complaint alleges that at least $1.8 million of the approximately $4 million raised was diverted to Myers’s personal financial accounts.
• Failure to repay investors: By the end of 2025, only approximately $398,000 had reportedly been returned to investors, a fraction of the total raised.
• Multi-state investor pool: At least 28 investors across multiple states were allegedly affected.

The SEC is seeking injunctive relief, disgorgement of allegedly ill-gotten gains, prejudgment interest, civil monetary penalties, and other equitable relief against all three defendants.

Who Is John Sterling Myers?

John Sterling Myers, 41, is a Chicago, Illinois resident and the sole owner and operator of Sterling Capital, LLC and Sterling Capital Management, LLC. According to the SEC’s complaint, Myers marketed himself to prospective investors by touting prior experience as an investment banker on Wall Street, where he had worked as an analyst and associate at a New York investment bank from 2007 to 2013 before being laid off.

According to the SEC, Myers described Sterling Capital Investments as a “premier” and “exclusive investment pool” and falsely represented that a team of experts, including two of his siblings in named executive roles, supported the fund’s operations. The SEC alleges neither sibling was involved with the firm in any capacity.

Neither Myers nor either of his entities has ever been registered with the SEC as an investment adviser. The SEC’s June 2026 civil complaint was filed in parallel with a federal criminal indictment by the U.S. Attorney for the Northern District of Illinois, which charged Myers with four counts of wire fraud. He pleaded not guilty at his arraignment on June 12, 2026. Each wire fraud count carries a maximum penalty of 20 years in federal prison.

How the Alleged Scheme Worked: Fabricated Statements and Misappropriation

The SEC’s filing paints a picture of a scheme built on deception. Here is how the agency says it worked:

1. Raising capital: Myers allegedly solicited investors to place funds with Sterling Capital, LLC and Sterling Capital Management, LLC, promising professional management and favorable returns.
2. Concealing losses: Rather than providing truthful performance reports, Myers allegedly fabricated quarterly account statements that showed the investors’ portfolios were growing, in some cases reporting returns around 54%.
3. Diverting funds: According to the complaint, at least $1.8 million of the $3.6 million in alleged net losses was transferred into Myers’s personal accounts. Those funds were allegedly used for personal expenses rather than invested on behalf of clients.
4. Minimal repayment: By late 2025, only about $398,000 had been returned to investors, leaving the overwhelming majority of the money unaccounted for.

This pattern, false statements paired with misappropriation, mirrors tactics the SEC has targeted in prior investment fraud enforcement actions. For investors, the fabricated statements made it nearly impossible to detect the alleged fraud in real time because every report they received showed their money was growing.

What This Means for Investors

Investors who entrusted funds to John Sterling Myers or either Sterling Capital entity may have legal options beyond the SEC’s own enforcement action. An SEC civil case seeks disgorgement and penalties that flow to the government or a disgorgement fund, but it does not automatically compensate every investor for every dollar lost.

Independent recovery paths may include:

• Private civil claims for securities fraud: Investors can bring their own federal or state court actions alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
• State-law fraud and breach-of-fiduciary-duty claims: Although Myers was not registered as an investment adviser, investors who entrusted him with discretionary control over their funds may still be able to pursue breach-of-fiduciary-duty claims under state common law, which can impose fiduciary obligations on anyone who assumes that kind of control and trust over another person’s money.
• Potential claims against third parties: Depending on the facts, investors may also have claims against any registered broker-dealer, custodian, or other entity that facilitated the movement of funds or failed to flag suspicious activity.

Warning signs that an investment relationship may involve fraud include:

• Consistently above-market returns with no explanation of strategy
• Account statements that come directly from the adviser rather than an independent custodian
• Difficulty withdrawing funds or unexplained delays in redemptions
• Pressure to recruit friends and family members into the same program

If any of these factors were present in your dealings with Sterling Capital, it is worth speaking with a qualified attorney about your options. The experienced attorneys at Meyer Wilson Werning handle SEC investigations and enforcement actions and can review your situation at no cost.

How Meyer Wilson Werning Can Help

Investors who placed trust and capital in John Sterling Myers were not simply let down by bad trades. According to both the SEC and federal prosecutors, they were allegedly deceived from the start, through fabricated statements, inflated valuations, and funds that were spent before they were ever invested.

With more than $350 million recovered for investors nationwide, Meyer Wilson Werning has spent over 25 years holding advisers and firms accountable for exactly this kind of alleged misconduct. If you lost money through John Sterling Myers or either Sterling Capital entity, and a licensed financial professional, broker, or adviser was involved in directing or facilitating your investment, contact us today for a free and confidential consultation. You pay nothing unless we recover for you.

Frequently Asked Questions

What is the SEC alleging against John Sterling Myers?

The SEC alleges that John Sterling Myers, Sterling Capital, LLC, and Sterling Capital Management, LLC engaged in a multi-year investment fraud scheme. According to Litigation Release No. 26562, the agency says fabricated quarterly account statements were used to hide trading losses and misappropriation of investor funds. The SEC filed the case in the Northern District of Illinois on June 5, 2026.

Is John Sterling Myers facing a SEC enforcement action?

Yes. The SEC filed Securities and Exchange Commission v. John Sterling Myers; Sterling Capital, LLC; and Sterling Capital Management, LLC, No. 1:26-cv-6696, in the Northern District of Illinois. The release says the Commission is seeking injunctive relief, disgorgement, prejudgment interest, civil monetary penalties, and other equitable relief.

What does the SEC complaint say about Sterling Capital and investor losses?

The SEC alleges that the defendants raised approximately $4 million from at least 28 investors and that only about $398,000 had been repaid by the end of 2025. The complaint also says at least $1.8 million was diverted to personal financial accounts. Those allegations, if proven, would support claims for securities fraud and misappropriation.