COEUR d'ALENE - The Idaho Department of Finance is suing a Coeur d'Alene man for alleged investment fraud and is seeking $1.3 million in refunds for investors' losses and another $100,000 in civil penalties as well as attorney fees and costs.

The lawsuit filed in First District Court in Kootenai County last week accuses Keith Eugene Mitchell of violating state anti-fraud provisions and failing to tell investors he was not licensed with federal regulators.

Mitchell, 40, has conducted business under various names, including Investing for Mission Inc., IFM Humanitarian Fund LLC, and The Option Group LLC, according to court documents.

Mitchell formed Option Group in 2007 for the purpose of conducting an investment enterprise.

Agency attorneys say Mitchell attracted at least seven investors starting in 2007, convincing them to put money into commodity futures options. The lawsuit says Mitchell told investors that if they followed his recommendations, they would receive annual returns of 36 percent to 60 percent and their losses would be limited to 5 percent of their principal investment.

In some cases, though, the losses approached 90 percent to 100 percent when the market plummeted in 2008.

The complaint also alleges that Mitchell failed to tell investors that in 2003 the department had ordered him to cease and desist from securities violations and to pay a $25,000 civil penalty.

A telephone number listed for Mitchell is no longer in service.

- The Associated Press contributed to this report.