Dear Investor:

On March 7, 2025, the U.S. Securities and Exchange Commission (“SEC”) filed a complaint against Peter Stuart and twenty-seven Outlier entities operating under the Outlier Realty Capital umbrella (the “Outlier Entities”) alleging misrepresentations regarding the uses and distribution of investor funds. Mr. Stuart and the Outlier Entities agreed to settle the action, without admitting or denying the SEC’s allegations. On March 26, 2025, the U.S. District Court for the District of Maryland entered the agreed upon Judgment against Mr. Stuart and the Outlier Entities. 

The Judgment permanently enjoins Mr. Stuart and the Outlier Entities from violating the provisions of the federal securities laws with which they are charged. The Outlier Entities were ordered to retain an independent consultant to, among other things, reconcile the Outlier Entities’ accounts and oversee distributions to investors upon the sale of five properties. Mr. Stuart and thirteen of the Outlier Entities are jointly and severally liable for disgorgement of $1,471,440 plus $159,936 in prejudgment interest. The same thirteen Outlier Entities will also be jointly and severally liable for a $1,471,440 civil penalty. Mr. Stuart will pay a $240,464 civil penalty, be subject to a five-year bar from serving as an officer or director of a public company, and to a five-year injunction prohibiting him from participating in the issuance, purchase, offer, or sale of any security, except for his own account.

The SEC Complaint may be accessed here and the Final Judgment may be accessed here.  

Please contact us if you have any questions or need additional information.

Sincerely,

Peter Stuart

Outlier Manager LLC