Texas Issues Emergency Order Against Lasater Capital Over Concealed $100M in Loan Defaults
The Texas State Securities Board issued an emergency cease and desist order against Southlake-based Lasater Capital, LLC and its principals, alleging the firm solicited investors for a real estate fund while concealing more than $100 million in loan defaults, multiple bankruptcies, foreclosures, and investor lawsuits tied to an affiliated prior venture.
The order, signed June 9 by Deputy Securities Commissioner Cristi Ramón Ochoa, names Lasater Capital founding partner and chief financial officer Shiloh Boone Lasater and managing partner and chief executive officer Tie Glenn Lasater as respondents alongside the firm.
According to the order, Lasater Capital was soliciting investors for Lasater RE Fund 14, a limited partnership targeting up to $10 million from investors with minimum commitments of $100,000. The firm represented that Fund 14 would deliver returns of up to 20%, quarterly cash flow distributions, and a projected two-times equity multiple over approximately five years. The fund had raised $5.6 million from 53 investors, according to the order.
The enforcement action centers on the firm’s alleged failure to disclose the financial history of KeyCity Capital, LLC, a prior real estate venture controlled by the two Lasater principals before Lasater Capital’s formation. According to the order, affiliated KeyCity entities experienced widespread distress beginning around 2024, including loan defaults exceeding $100 million, foreclosure proceedings on six Memphis-area multifamily properties securing roughly $84 million in debt, Chapter 11 bankruptcy filings by multiple entities, the appointment of a Dallas receiver over a multifamily property following alleged city and fire code violations, and investor lawsuits alleging fraud, misrepresentation, elder abuse, and securities violations.
Despite that history, the order alleges, Lasater Capital’s website continued to highlight KeyCity’s track record – claiming the firm had grown its business, protected investor principal in full, and never missed a distribution.
“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. “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 also alleges registration violations, finding that Fund 14 interests constitute securities under Texas law for which no permit has been granted. Although the respondents filed a notice claiming an exemption from registration, the order concludes they are not entitled to that exemption because the offering was made through materially misleading statements and omissions.
The order requires the respondents to immediately stop offering or selling securities in Texas, cease acting as dealers, agents, or investment advisers, and halt any offer containing materially misleading statements. The respondents have 31 days from service of the order to request a hearing. Failure to do so renders the order final and non-appealable.
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