AUSTIN, Texas — The Texas State Securities Board has issued an Emergency Cease and Desist Order against Lasater Capital, LLC and its principals, Shiloh Boone Lasater and Tie Glenn Lasater, alleging the company offered and sold securities through materially misleading statements and omissions involving a real estate investment fund marketed to investors, including Texans. The real estate investment firm is based out of Southlake, TX. They used the address 1211 S. White Chapel Blvd (The Courtyard at Timarron). The website for Lasater Capital is still online and it shows Tie Lasater as the CEO and Boone Lasater as the CEO.
According to the order, Lasater Capital offered investments in Lasater RE Fund 14, a real estate fund promoted as an opportunity to invest in diversified multifamily and real estate-related assets. Investors were told they could receive quarterly cash-flow distributions, equity appreciation and targeted returns of up to 20%.
Regulators said the fund sought to raise approximately $10 million and had already raised about $5.6 million from more than 50 investors.
The Texas State Securities Board alleges the respondents failed to disclose significant information about the financial condition and operational history of affiliated entities controlled through KeyCity Capital, LLC.
According to the enforcement action, affiliated companies experienced substantial financial distress, including more than $100 million in loan defaults, property foreclosures, Chapter 11 bankruptcy proceedings, receivership actions, investor lawsuits and multimillion-dollar judgments.
“Investors are entitled to all material information when evaluating investment opportunities,” said Jeramy Heintz, director of the Enforcement Division for the Texas State Securities Board. “Beyond that, issuers also owe investors the duty to disclose. When promoters highlight projected returns, experience, and track records while failing to disclose significant adverse events, investors may be deprived of information necessary to make informed investment decisions.”
The order alleges the respondents engaged in fraudulent, deceptive and misleading practices by failing to disclose:
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Multiple bankruptcies involving affiliated entities;
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Defaults on loans exceeding $100 million;
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Foreclosures involving affiliated properties and investment funds;
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The appointment of a receiver for an affiliated Dallas multifamily property;
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Investor lawsuits alleging fraud, misrepresentation, elder abuse and securities violations; and
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Financial distress, judgments and litigation involving affiliated entities while continuing to promote a successful track record.
Regulators further allege the investment interests offered through the fund constitute securities under Texas law and that no permit was granted authorizing their sale in Texas.
Although the respondents filed a notice claiming an exemption from registration requirements, the order alleges they are not entitled to rely on that exemption because the securities were offered through materially misleading statements and omissions of material facts.
The Texas State Securities Board is encouraging investors to independently verify investment opportunities and carefully review offering materials before investing, particularly in private investment offerings that emphasize projected returns while failing to fully disclose risks and prior business performance.
The investigation remains ongoing through the Enforcement Division of the Texas State Securities Board.
The allegations contained in the emergency order have not been proven in court, and the respondents are entitled to contest the allegations through the legal process.
Texans who have been solicited by Lasater Capital, LLC, Lasater RE Fund 14, or related entities are encouraged to contact the Enforcement Division through the Texas State Securities Board website at https://www.ssb.texas.gov, by calling (512) 305-8300, or by emailing enforceinfo@ssb.texas.gov.
