In the Matter of Legacy Hospitality II, LLC, et al. Admin. Proc. File No. 3-21586

On August 28, 2023, the Commission 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 Commission 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 Commission ordered Legacy to pay disgorgement of $2,283,000, prejudgment interest of $459,012.67, and civil money penalty of $1,150,000, for a total of $3,892,012.67, pursuant to a payment plan detailed in the Order. The Commission further ordered Legendary to pay disgorgement of $463,900, prejudgment interest of $85,431.50, and a civil money penalty of $225,000 for a total of $774,331.50, also pursuant to a payment plan detailed in the Order. The Commission also ordered Maple to pay a civil money penalty of $100,000. Collectively, Respondents were ordered by the Commission to pay a total of $4,766,344.17, to the Commission. The Commission 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”). See the Commission’s Order: Release No. 33-11227.

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 Commission-designated account at the U.S. Department of the Treasury, and any accrued interest will be added to the Fair Fund.

On January 6, 2025 the Commission issued an order appointing Heffler, Radetich & Saitta, LLP, as the Tax Administrator of the Fair Fund.  See the Commission’s Order:  Release No. 34-102128.

On April 25, 2025, the Commission issued an order appointing Simpluris, Inc. as the Fund Administrator to oversee the administration and distribution of the Fair Fund and, set the administrator’s bond amount. See the Commission’s Order: Release No. 34-102936.

On September 4, 2025, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”).  The notice provides the public with 30 days to submit their comments on the Proposed Plan.  See the Commission’s Notice:  Release No. 34-103861 and the Proposed Plan.

The Proposed Plan provides that the distribution of the Fair Fund shall be made to compensate investors for their losses from the improperly allocated expenses charged to Lodging Opportunity Fund Real Estate Investment Trust from June 1, 2014, through May 31, 2020 and Lodging Fund REIT III, Inc. from September 30, 2018, through December 31, 2018, due to the misconduct of the Respondents

On October 27, 2025, the Commission issued an order extending time to enter an order approving or disapproving plan of distribution until July 3, 2026. See the Commission’s Order: Release No. 34-104170.

For more information, please contact the Commission:

Office of Distributions
Email: ENFOfficeofDistributions@sec.gov