Idaho Falls businessman Keith F. Rasmussen is accused of fraudulently obtaining more than $500,000 from a least five Idahoans.
The Idaho Department of Finance civil lawsuit was filed in Bonneville County citing violations of the registration and anti-fraud provisions of the Idaho Uniform Securities Act.
The department alleges Rasmussen promised investors their investment was safe and would be secured by a deed of trust on elder care facilities he owned and operated.
The complaint states Rasmussen formed eight companies engaged in the assisted living business and that he frequently "used the money for some purpose other than what he told the lender." The lawsuit seeks restitution for investors, penalties, and fees as well as a permanent injunction prohibiting Rasmussen from offering securities in Idaho in the future.
Rasmussen's companies included Gables Management, LLC, Gables of Pocatello, LLC, Gables of Shelly, LLC, and Gables of Blackfoot, LLC.
Rasmussen previously operated Rasmussen Enterprises (dba Gables Senior Living or Gables of Idaho Falls), but that company was passed to other individuals and is not associated with the lawsuit.
Specifically, the suit alleges Rasmussen:
1. Misrepresented that the investment was risk free or virtually risk free.
2. Misrepresented to some investors that their funds would be well secured by a real property deed of trust.
3. Failed to inform investors that some of the funds raised would be used to repay prior investors or lenders, and in some cases Rasmussen's personal expenses.
4. Failed to advise investors that he was the subject of prior court actions by other lenders/investors who sought a return of their funds.
5. Failed to provide complete financial disclosures about his his business operations and the actual risks of the investment.