State Finance Department accuses former eastern Idaho care provider of fraud
The Idaho Department of Finance has filed a securities civil lawsuit in Bonneville County against Keith F. Rasmussen of Idaho Falls. The complaint cites violations of the registration and anti-fraud provisions of the Idaho Uniform Securities Act.
The Department alleges that Rasmussen obtained more than $500,000 from at least five Idahoans amid promises that their investment was safe and would be secured by a deed of trust on elder care facilities owned and operated by Mr. Rasmussen.
According to an Idaho Department of Finance news release, the suit alleges that 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 Mr. 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, and
5. Failed to provide complete financial disclosures about his business operations and the actual risks of the investment.
The complaint further states that Rasmussen formed eight companies that were engaged in the assisted living business and that “frequently he used the money for some purpose other than what he told the lender.” The lawsuit seeks restitution for investors, penalties and fees and a permanent injunction prohibiting Mr. Rasmussen from offering securities in Idaho in the future.
Companies associated with Mr. Rasmussen included Gables Management, LLC, Gables of Pocatello, LLC, Gables of Shelly, LLC, and Gables of Blackfoot, LLC, the release said.
Rasmussen previously operated Rasmussen Enterprises (dba Gables Senior Living or Gables of Idaho Falls), but that company was passed to other individuals not associated with this lawsuit, it added.
We could not reach Rasmussen for comment.