Texas Regulators Ordered Lasater RE Fund Refunds
Investors in the real estate fund will receive repayments after state regulators challenged the firm's financial disclosures.
Updated on Sept. 22, 2026 in Commercial
Live Poll
Do you trust private real estate investment funds to disclose their financial risks to investors?
In August 2026, Texas regulators required Lasater RE Fund to provide refunds to investors after an initial June 2026 cease and desist order. The state regulatory action focused on failed disclosures regarding the financial condition of entities affiliated with the fund.
Why it matters
The order stems from a failure to disclose material information about the operational history of related entities, which had experienced loan defaults exceeding $100 million. This action ensures that investors in the $5.6 million fund receive capital recovery after officials scrutinized the firm's transparency.
The fund sold $5.6 million in securities to 50 investors, with $750,000 paid out in commissions at a 13.4% rate. These figures follow reports of $100 million in loan defaults among related entities.
The players
Texas State Securities Board
A state regulatory body tasked with protecting investors and ensuring transparency in securities offerings.
Lasater RE Fund
A private real estate investment firm that marketed multi-family property opportunities.
Stephen D. Patterson
A registered representative based in Plano, Texas, who is associated with J. Alden Associates Inc.
J. Alden Associates Inc.
A Pennsylvania-based firm with 100 registered representatives managing various investment products.
The details
Lasater Capital marketed the fund to investors as a path to participate in multi-family and real estate-related assets. Texas regulators intervened after determining the firm did not properly disclose the financial stability of its affiliated entities. Following negotiations, the firm agreed to repay investors, and the state opted to drop initial fraud claims.
Timeline
May 5, 2026: Regulation D filing date for the fund.
June 2026: Texas regulators issued a cease and desist order.
August 2026: Regulators dropped fraud claims and ordered refunds.
The Home Front
This enforcement action aligns with state efforts to uphold transparency standards for private real estate investment offerings. It follows the established patterns of securities oversight for Regulation D filings, which often require strict disclosure of affiliated entity risks.
Investors who participated in this specific fund should monitor their accounts for the scheduled repayments. Always review the full disclosure history of real estate funds before committing capital to ensure the operational health of all affiliated entities is clearly documented.
The takeaway
Transparency in investment offerings is a critical safeguard for protecting your capital in private real estate markets. Always verify the financial history of parent companies and affiliates before signing any investment agreements.
Further reading
For more on market regulations, explore Commercial real estate developments.
Source note: This article includes information reported by InvestmentNews.
Live Poll
Do you trust private real estate investment funds to disclose their financial risks to investors?
