Texas Investor Lawsuit Targets Alleged Securities Fraud
The suit claims a Southlake firm failed to return $450,000 in capital after fund defaults.
Updated on Oct. 23, 2026 in Investing
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A Texas investor has filed a federal lawsuit against Southlake-based Lasater Capital, alleging securities fraud after failing to recoup a $450,000 investment. This follows an earlier emergency cease-and-desist order issued by the Texas State Securities Board.
Why it matters
The legal action highlights the risks investors face when funds use passive-consent amendments to shift capital into affiliated entities that may later default. For individual investors, this case underscores the importance of verifying how capital is deployed and monitored after an initial deposit is made.
The investor reports receiving only $31,335.34 in cash payments on an initial $450,000 investment made in 2022 and 2023. Beyond this individual case, the firm faces a broader default landscape involving over $100 million in loans across multiple properties.
The players
Lasater Capital
An investment firm based in Southlake that marketed funds to individual investors through social media and radio.
Texas State Securities Board
The state regulatory agency responsible for protecting investors through the enforcement of securities laws.
The details
The lawsuit alleges that Lasater Capital moved investor funds into affiliated entities without explicit permission, utilizing a passive-consent email to amend partnership agreements. These entities subsequently struggled, leading to property foreclosures in Texas and Tennessee and leaving investors without expected returns. The firm had previously used social media, radio, and celebrity endorsements to market these funds to potential participants.
Timeline
The investor deposited $450,000 into two funds between late 2022 and early 2023.
The investor's two-year investment term concluded in late November 2024.
Properties in Bryan and Joshua, Texas were foreclosed on in August 2025.
A lender foreclosed on a 1,240-unit apartment portfolio in Memphis in September 2025.
The investor filed the complaint in federal court on October 22, 2026.
Money Landscape
The legal action follows an enforcement cycle under the Texas Securities Act, marking a significant intervention in private fund management. This case reflects a period of heightened scrutiny for firms that have faced multiple defaults on large-scale real estate portfolios since 2024.
Investors should review any partnership agreements for clauses that allow for the redirection of capital to affiliated entities without explicit, proactive approval. If you are concerned about your own portfolio, consider scheduling a consultation with a qualified financial or tax professional to review your current disclosures.
The takeaway
This case illustrates the critical danger of 'passive consent' clauses that allow firms to shift your capital into high-risk, affiliated projects without your direct approval. Review your fund's original partnership agreement today to understand exactly what authorities you granted the firm regarding future capital shifts.
Further reading
For more information on vetting managers, visit our guide to Investing.
Source note: This article includes information reported by InvestmentNews.
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