The state has reached a settlement with a Boise man who allegedly defrauded investors by persuading them to invest in a Downtown Boise event center, but then using their money for personal expenses and to repay loans to himself and others.
The Idaho Department of Finance sued Jeffrey Jerome in March, claiming Jerome raised about $238,500 by falsely leading investors to believe they would have an ownership in the Powerhouse building he was purchasing. But Jerome only rented and never purchased the building on South 17th Street.
The state argued that Jerome’s activities constituted the offer and sale of promissory notes and securities, which Jerome was not licensed to do.
The state announced on Thursday it had reached a settlement with Jerome.
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Under the settlement, “without admitting or denying the state’s allegations of misrepresentations and omissions,” Jerome agreed to violating the Idaho Securities Act. He will accept a permanent ban from issuing, offering or selling securities in Idaho, and will pay $152,676 in restitution to investors, according to a news release.
The Powerhouse building, built in 1912 by famed Boise architects Tourtellotte and Hummel, has since been sold.
Tom Rebholtz, owner of Windermere Powerhouse Group, submitted plans to the city of Boise in September to renovate the building for offices.
Jerome, 47, grew up in Caldwell and lived in Southwest Boise at the time the lawsuit was filed. He could not immediately be reached for comment Thursday.