Seven separate legal proceedings have been filed against Pelorus Capital Group, its managing partners Daniel Leimel Jr. and Rob Sechrist, and related entities — spanning JAMS and AAA arbitration, California Superior Court, and Pennsylvania state court.
This is the primary investor arbitration demand against Pelorus Capital Group's managing partners. Filed on behalf of multiple limited partner claimants, the demand alleges that Daniel Leimel Jr. and Rob Sechrist directed approximately $52 million of Pelorus Fund investor capital into undisclosed related-party loans — investments in which Leimel and Sechrist held personal ownership interests. None of these transactions were disclosed to limited partners, submitted to the investment committee for approval, or reported to fund auditors.
The demand further alleges that after internal discovery of the first undisclosed loan in late 2021 or early 2022, Leimel and Sechrist assured other managers the situation would be remedied — but instead expanded the loans and added three additional undisclosed related-party investments. Approximately $46 million of these loans has defaulted and remains on the fund's books. The filing also names Ethan Leimel (son of Daniel Leimel Jr.) in connection with alleged asset transfers into entities under his control.
⬇ Download Arbitration Demand PDFA prior arbitration proceeding resulted in an award of $347,414.84 against Pelorus Capital Group, along with an order requiring Pelorus to produce books and records for investor inspection. Pelorus Capital Group has refused to comply with the books and records order, prompting Venable LLP to file a petition in Orange County Superior Court on April 10, 2026, to formally confirm the award and compel document production.
The ongoing refusal to produce financial records — despite a direct arbitration order — is itself significant. As the investor coalition has noted publicly: they are still refusing to produce documents ordered by an arbitration panel. What are they hiding?
⬇ Download Petition PDFInvestor Rick Howell filed a breach of contract complaint against Pelorus Fund REIT, LLC and related entities in Orange County Superior Court. The complaint arises from the suspension of investor redemptions and the failure by Pelorus management to honor investor rights under the fund's governing documents. Rick Howell is one of the largest individual investors in the Pelorus Fund with a reported investment of approximately $8.5 million.
⬇ Download Complaint PDFA companion complaint filed by Rick Howell ten days after his first, this action targets the network of Pelorus-affiliated entities alleged to have received investor capital through undisclosed related-party transactions. M3CP Holdings, JRS Capital, and Lost Winds Capital are named as defendants — entities that are referenced in the primary derivative arbitration demand as recipients of the $52 million in undisclosed related-party loans.
⬇ Download Complaint PDFInvestor Leyda Bequer filed a complaint and amended complaint in Pennsylvania Court of Common Pleas against Pelorus Equity Group and related defendants, alleging breach of guaranty and fraud. This filing is significant because it extends the legal exposure of the Pelorus enterprise beyond California state court and into additional jurisdictions, and because it involves Pelorus Equity Group — a distinct but affiliated entity in the Pelorus Capital Group network.
⬇ Download Complaint PDFAn additional confirmed complaint was filed in June 2025 against Pelorus Capital Group management. This filing is part of the coordinated legal effort by the investor coalition and its counsel. The full document is available for download.
⬇ Download PDFGreenspoon Marder LLP was retained by Pelorus Capital Group as independent counsel to investigate the undisclosed related-party loans. According to the managing partner's resignation letter of May 29, 2024, their engagement was terminated before their findings could be acted upon — a termination that is alleged to have been directed by Leimel and Sechrist to prevent disclosure. A separate proceeding relates to Pelorus's failure to pay Greenspoon Marder's outstanding legal fees for that engagement.
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