A Southlake real estate empire marketed with promises of quarterly cash flow and returns of up to 20% is now facing a state shutdown order, investor-loss allegations and a trail of distressed apartments where residents reportedly dealt with mold, rats, sewage and collapsing ceilings. The allegations center on Tie Lasater, his brother Shiloh and KeyCity Capital, which later operated as Lasater Capital. The case has put a glossy Texas wealth story up against a much grimmer question: what happened to the money—and the buildings?
On June 9, the Texas State Securities Board issued an emergency cease-and-desist order against Lasater Capital, Tie Lasater and Shiloh Lasater, alleging they solicited investors through materially misleading statements and omissions. The board said Lasater RE Fund 14 was pitched with minimum investments of about $100,000, targeted returns of up to 20% and a $10 million fundraising goal, while filings showed it had already raised roughly $5.6 million from 53 investors. The Texas State Securities Board said the order was intended to stop the offerings while its investigation continues.
The regulator’s allegations reach back to KeyCity, which controlled a series of apartment and real estate funds before the Lasater Capital rebrand. Since roughly 2024, the board says affiliated entities defaulted on more than $100 million in loans, lost properties to foreclosure, filed Chapter 11 cases, faced investor lawsuits and entered receivership proceedings. As reported by The Real Deal, five Lasater properties in Texas went into bankruptcy, foreclosure or receivership.
From Dallas Receivership To Bryan Move-Out Orders
That financial unraveling has had a physical footprint. Dallas city records show the city filed suit in 2024 against KCAP Meadows at Ferguson LLC over ongoing code issues at the multifamily property, while the state securities order says the Dallas complex later came under a receiver. A joint investigation by the City of Dallas and local news reports described complaints involving raw sewage, rat infestations, black mold, missing water and ceilings falling inside apartments.
In Bryan, Canyon Village Apartments became another highly visible symbol of the collapse. The city ordered the remaining residents of 18 apartments to leave after documenting sewage backups, structural concerns, fire-safety problems and pest infestations, although a judge temporarily blocked enforcement after the ownership sued. KBTX reported that the complex had been foreclosed on in August 2025 and that Better World Properties took over management afterward.
For investors, the losses described in the reporting are not merely balance-sheet abstractions. Kit Langstroth, a Sacramento investor, told the joint investigation that his $1.6 million investment had dwindled to about $80,000 and that he had taken out a reverse mortgage and returned to work. The Lasaters’ attorney disputed the state’s case, calling the allegations “unproven and disputed claims” and saying the brothers expected a favorable result, according to the Houston Chronicle.
What The Order Does—and Doesn’t Do
The action is regulatory, not a criminal conviction. The order directs Lasater Capital and the brothers to stop offering securities in Texas unless the investments are properly registered or covered by a valid exemption, and it says knowingly violating the order can carry a fine of up to $10,000, two to 10 years in prison, or both, according to the emergency order.
The Real Deal reported that the Lasater brothers have not been formally charged with crimes. For now, the dispute spans a state securities proceeding, bankruptcy and foreclosure cases, investor claims and apartment properties where tenants have been left dealing with the consequences of a business model that appears to have expanded faster than its ability to maintain the homes and debts beneath it.
