If you were an investor who suffered a loss due to improperly allocated expenses charged to the Lodging Opportunity Fund Real Estate Investment Trust (“Fund 2”) from June 1, 2014, through May 31, 2020 (the “Fund 2 Relevant Period”) and Lodging Fund REIT III, Inc. (“Fund 3”, together with Fund 2, the “Funds”) from September 30, 2018, through December 31, 2018 (the “Fund 3 Relevant Period”) due to the misconduct of the Respondents and you would like to be considered for eligibility to share in the Fair Fund distribution, you must complete and submit a Certification Form on or before 11:59 p.m. Eastern Standard Time on October 19, 2026 (the “Certification Form Deadline”). You can also submit a Certification Form by mail, in which case the completed Certification Form must be postmarked (or if not sent by U.S. Mail, received) by October 19, 2026.
Background of the Case
On August 28, 2023, the SEC instituted and simultaneously settled cease-and-desist proceedings (the “Order”) against Legacy Hospitality II, LLC (“Legacy”), Legendary Capital REIT III, LLC (“Legendary”), and Corey R. Maple (“Maple”) (collectively, “Respondents”). In the Order, the SEC found that from 2014 to 2020, Respondents improperly directed two Real Estate Investment Trusts to reimburse Legacy and Legendary for approximately $5 million in overhead expenses in a manner that was inconsistent with disclosures made to investors. The Order further found that Maple exercised decision-making authority over the allocation of expenses.
The SEC ordered Legacy to pay disgorgement of $2,283,000.00, prejudgment interest of $459,012.67, and a civil money penalty of $1,150,000.00, for a total of $3,892,012.67, pursuant to a payment plan detailed in the Order. The SEC further ordered Legendary to pay disgorgement of $463,900.00, prejudgment interest of $85,431.50, and a civil money penalty of $225,000.00 for a total of $774,331.50, also pursuant to a payment plan detailed in the Order. The SEC also ordered Maple to pay a civil money penalty of $100,000.00. Collectively, Respondents were ordered by the SEC to pay a total of $4,766,344.17, to the SEC. The SEC also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty collected, along with the disgorgement and interest collected, can be distributed to harmed investors (the “Fair Fund”).
The Fair Fund includes the $4,766,344.17 paid by the Respondents, and any additional funds collected from the Respondents, pursuant to the Order, will be added to the Fair Fund. The Fair Fund and has been deposited in a SEC-designated account at the U.S. Department of the Treasury, and any accrued interest will be added to the Fair Fund.
Actions And Instructions | Deadline | |
Submit a Certification Form Online | Online Certification Form submissions are encouraged. Click here and follow the provided instructions to submit a Certification Form. If you are not a U.S. Person, as defined in Section II of the Certification Form, you must also submit a completed IRS Form W-8BEN, W-8BEN-E, or other W-8 series form, which can be found by visiting the following IRS website: https://www.irs.gov/forms-instructions. | Complete and submit online on or before 11:59 p.m. EST on |
Submit a Certification Form by Mail | If you are unable to submit a Certification Form online, you may request a copy of the paper Certification Form from the Fair Fund Administrator by email at info@LegacyHospitalityFairFund.com or by calling (866) 675-3042. If you are not a U.S. Person, as defined in Section II of the Certification Form, you must also submit a completed IRS Form W-8BEN, W-8BEN-E, or other W-8 series form, which can be found by visiting the following IRS website: https://www.irs.gov/forms-instructions. | Postmarked (or if not sent by U.S. Mail, received) by |
Upcoming Important Dates
Deadline to Dispute Recognized Loss & Certification Form Deadline (11:59 p.m. EST)
October 19, 2026