Aequitas Management LLC and four affiliates allegedly defrauded more than 1,500 investors nationwide into believing they were making health care, education, and transportation-related investments when their money was really being used in a last-ditch effort to save the firm. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. YouTubes privacy policy is available here and YouTubes terms of service is available here. John Deere boasted record profits in 2021 and finally struck a deal with striking union workers. Aequitas did make legitimate investments. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Marketing? Court finds defendant capable and competent to enter plea. The default came to attention of the U.S. Securities and Exchange Commission, which sued Aequitas in March 2016 and got the company shut down. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. A lock ( If you missed the last issue of InvestmentNews, you can access it here. Court: United States District Court for the District of Oregon (Multnomah County), Plaintiff's Attorney: Scott E. Bradford and Ryan W. Bounds, Defendant's Attorney: Kendra M. Matthews and Whitney Patrick Boise, 18:1341 and 18:1343 CONSPIRACY TO COMMIT MAIL AND WIRE FRAUD They hurt a whole lot of people.. If convicted on all charges, each of the defendants could face decades in prison and millions of dollars in fines and restitution, as well as five years supervised release following their prison terms. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. The company's general counsel just quit. Attorneys for the District of Oregon. In a divorce settlement filed with the court, it's. The company's general counsel just quit. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. They both opted not to talk. At a hearing in U.S. District Court on Monday, Janke confirmed that as part of his plea agreement, he would oppose any sentence of less than three years. Worse, regulators from the U.S. Consumer Financial Protection Bureau and the state Department of Justice began taking a hard look at the colleges agreement with Aequitas. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Brian Oliver, Aequitas Capital's longtime No. Not guilty pleas and denial of forfeiture allegation entered. Subsequent reports detailed Aequitas default on its debt, the resulting panic among investors, the secret conflicts, and the firms strange cultural mashup -- part Wall Street investment bank, part frat party, part Bible class. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Email USAO-OR. Oliver was the primary fundraiser for ACF and the Aequitas Funds and a member of the management committees responsible for selecting or approving the investments made with investor . I have really enjoyed working with Seth, Brian and the Cathedral team. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. According to court documents, Jesenik, Gillis, MacRitchie, Rice, and others used the Lake Oswego company to solicit investments in a variety of notes and funds, many of which were purportedly backed by trade receivables in education, health care, transportation, and other consumer credit areas. Attorneys for the District of Oregon. Get started today before this once in a lifetime opportunity expires. They've got that too. He established and maintained the companys accounting principles, practices, procedures and initiatives, prepared financial reports and presented findings and recommendations to the executive teams, and oversaw all financial functions. Once a high-flying Lake Oswego . On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . 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Williams announced today that Olaf Janke, a former owner and chief financial officer of Aequitas Management, LLC and several other Aequitas-owned entities, has pleaded guilty to conspiring to commit mail and wire fraud and money laundering. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. As part of the final consent judgment, the defendants are prohibited from soliciting anyone to purchase or sell a security and prohibiting them from participating in the issuance, offer, or sale of any security of an entity they control, the SECs release stated. Prosecutors claim the Aequitas executives misled company investors about how their money was being used. 1000 SW Third Ave Suite 600
As part of their plea agreements, they have both agreed to pay restitution in full to their victims as determined and ordered by the court. Jesenik, a former resident of West Linn, Oregon, is charged in a 32-count indictment with conspiracy to commit mail and wire fraud, wire fraud, bank fraud, and money laundering. Brian A. Oliver, age 51, resides in Aurora, Oregon. All three are permanently barred from the securities industry. As part of the plea agreement, Oliver has agreed to pay restitution in full to each of victims as determined and ordered by the court. Gillis was the second Aequitas chief financial officer. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. A federal grand jury in the District of Oregon returned an indictment today charging four founders of Forsage, a purportedly decentralized finance (DeFi) cryptocurrency investment platform, for their roles in On February 6, 2023, a Russian cryptocurrency money launderer previously extradited from the Netherlands to face charges in the District of Oregon pleaded guilty in federal court. Official websites use .gov Rice, a longtime Portland banker who eventually became regional president for Key Bank, gave up the big downtown office to join Aequitas in 2014. (chso). But much of that money has already been spent. | Articles Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). The firm was growing quickly, it did business with some of the best-known investment advisors in the country, it claimed to have more than $1 billion under management. They also have people who have helped raise money and sell businesses so they can help with that too. (See separate order.) An official website of the United States government. Portland, Oregon 97204
A locked padlock It is believed that since he was ousted from Aequitas, Jesenik has been working for a company founded by his son: KCR Advisors LLC, based in Viero Beach, Fla. An earlier indictment against Gillis will be dismissed. Brian Rice and Andrew MacRitchie left their corporate posts for jobs at Aequitas Capital. They also have people who have helped raise money and sell businesses so they can help with that too. They've got that too. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. (kms) (Entered: 04/19/2019), Home Plus, three other Aequitas defendants former second-in-command Brian Oliver and N. Scott Gillis and Olaf Janke, former Aequitas chief financial officers have pleaded guilty to fraud and. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. As Aequitas grew, its profile in the community also increased. Share sensitive information only on official, secure websites. By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. Email USAO-OR. ORDER granting the Government's oral motion to unseal the case. Bob Jesenik and Brian Oliver, the long-time chief executive and second-in-command at the Lake Oswego financial firm, said any misstatements they may have made to investors were simply. Have a question about Government Services? Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. This is a company that talked a woman into investing nearly her entire retirement nest-egg -- about half-a-million dollars - in October 2015, Kayser said. He argues he needs the money to help defray losses suffered by Aequitas investors. He pled guilty but has not yet been sentenced. Oliver was the companys primary fundraiser and shared responsibility for the operation and management of Aequitas-affiliated companies and investment products as well as for the use of investor money. Investors had been bilked out of hundreds of millions of dollars, the SEC said. More Local News to Love Start today for 50% off Expires 3/6/23. That has changed as the criminal case nears the indictment stage. According to a Complaint filed on March 10, 2016 in Oregon federal district court, the SEC has brought claims against Aequitas Management, LLC (CRD# 143780/SEC# 801-68039) and three Aequitas executives, Robert J. Jesenik, Brian A. Oliver, and N. Scott Gillis for defrauding investors and for a breach of fiduciary duties. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. A locked padlock After graduating from Oregon State University in 1987 with a degree in Finance and minor in Economics, Brian spent the next 10 years in commercial banking with US Bank before embarking on 20 years in the Investment Banking and Alternative Asset Management industry. In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. PORTLAND, Ore.A former senior executive and chief financial officer of Aequitas Management, LLC, and several other entities formerly owned by Aequitas, pleaded guilty today to submitting a false statement to an Aequitas creditor to obtain a $4.2 million loan for the now-defunct company. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. PORTLAND, Ore.U.S. Brian Oliver President, Cathedral Finance | Senior Advisor Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. On August 11, 2020, the U.S. Attorneys Officeannounced that Gillis had been charged in a 34-count indictment with conspiracy to commit mail and wire fraud, wire fraud, bank fraud, and money laundering. Signed on 4/19/2019 by Judge Michael W. Mosman. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. By early January 2016, Aequitass general counsel advised Gillis and other executives that the company would soon default on payments due to Private Note investors, causing an event of default on Aequitass loan agreement with Wells Fargo. ORDER Defendant released on previous conditions. Rice headed Key Bank in Oregon for 12 years. Brian A. Oliver, a former owner and executive vice president of Aequitas Management, LLC and several other Aequitas-related companies pleaded guilty to conspiring to commit mail and wire fraud and money laundering. In a separate administrative proceeding, Jesenik, Oliver, and Gillis were barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical ratings organization, the SEC said. Other funds went to pay their salaries. Former Aequitas executives and co-conspirators Brian A. Oliver and Olaf Janke previously pleaded guilty to conspiring to commit mail and wire fraud and money laundering on April 19, 2019, and June 10, 2019, respectively. The SECs complaint alleged that Jesenik and Oliver were aware of Aequitass calamitous financial condition yet continued to solicit millions of dollars from investors to pay the firms ever-increasing expenses and attempt to stave off the impending collapse of the business. It added that Gillis allegedly concealed the firms insolvency from investors and was aware that Jesenik and Oliver continued soliciting investors so that Aequitas could pay operating expenses and repay earlier investors with money from new investors.. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. Sentencing materials are due no later than 7/31/2019. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. Sentencing is set for 8/5/2019 at 9:00AM in Portland before Judge Michael W. Mosman. MacRitchie, a former ScottishPower and PacifiCorp executive, said in court filings that he too has incurred defense costs in connection with the DOJ investigation. Whether prosecutors consider MacRitchie a target or witness or some other category is unclear. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europe's Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX, Exec VP & Pres:Financial Svcs, Aequitas Capital Mgmt Inc. By late 2015, Aequitas was suffering one of its periodic cash flow crises. Counsel Present for Defendant: Whitney Boise, Kendra Matthews. Its been a long time coming, Kayser said. Its not just the amount of insurance money that went to Jesenik that concerns the receiver. One of Aequitas biggest moneymakers disappeared almost overnight. There was no more hiding the fact that Aequitas was broke. But prosecutors allege the Aequitas executives lied about the firms financial performance. Waiver of indictment signed and accepted by the Court.
Oliver and his co-conspirators also failed to disclose other critical facts about the company, including its near-constant liquidity and cash-flow crises, the use investor money to repay other investors and to defray operating expenses, and the lack of collateral to secure funds. Lock Brian has been a Senior Advisor with Cathedral Consulting since 2017. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Seven years ago, it was easy to believe in Aequitas. Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) Luminaries from the downtown business establishment wanted to join the team. There was the commercial lender. According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. Oliver faces a maximum sentence of 30 years in prison, a $250,000 fine or twice the gross monetary gains or losses resulting from his crimes, and three years supervised release. He committed suicide in an attempt to hide . SEC v. Aequitas Management, LLC; Aequitas Holdings, LLC; Aequitas Commercial Finance, LLC; Aequitas Capital Management, Inc.; Aequitas Investment Management, LLC; Robert J. Jesenik; Brian A. Oliver; and N. Scott Gillis Case Number: 16-cv-00438 (United States District Court for the District of Oregon) Date Filed: March 10, 2016 He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. By the time Corinthian filed for bankruptcy and students went on strike refusing to pay their loans some 75% of the receivables of the Aequitas notes came from the for-profit scam, according to RIA Intels first story on Aequitas. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. All Rights Reserved. Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. Aequitas Management, the Oregon-based RIA accused in 2016 of running a massive Ponzi-like scheme, and its top executives have finally settled with the Securities and Exchange Commission. In what could be the largest settlement of a securities lawsuit in Oregon history, settlements of at least $234.6 million have been secured for some 1,600 investors in a class action against third. A federal grand jury in the District of Oregon returned an indictment today charging four founders of Forsage, a purportedly decentralized finance (DeFi) cryptocurrency investment platform, for their roles in On February 6, 2023, a Russian cryptocurrency money launderer previously extradited from the Netherlands to face charges in the District of Oregon pleaded guilty in federal court. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement, Privacy Policy and Cookie Statement, and Your Privacy Choices and Rights (each updated 1/26/2023). MacRitchie was the companys executive vice president and chief compliance officer. U.S. Attorney's Office, District of Oregon, Criminal conspiracy could have cost investors more than $600 million, Former Aequitas Owner and Executive Vice President Pleads Guilty in Fraud and Money Laundering Conspiracy, Salem Man Pleads Guilty for Using Twitter to Threaten Violence Against Robinhood Employees, FBI and Partners Issue National Public Safety Alert on Financial Sextortion Schemes, Armed Robbery Crew Posing as DEA Agents Charged in Federal Court, Former Aequitas Owner and Executive Vice President Pleads Guilty In Fraud and Money Laundering Conspiracy. Official websites use .gov He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. The fallout continues in the Aequitas Management scandal, which has produced guilty pleas, jail sentences, big-dollar fines and, now, additional bans from the industry by the Securities and Exchange Commission (SEC). This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is believed that since he was ousted from Aequitas, Jesenik has been. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. Plea Petition and Plea Agreement signed and accepted by the Court. YouTubes privacy policy is available here and YouTubes terms of service is available here. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. They are also prohibited from violating the SECs antifraud provisions. The Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. As U.S. Judge Magistrate Paul Papak noted in an October 2017 ruling, at that point 61 percent of the defense cost payments went to Jeseniks lawyers. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. All three are permanently barred from the securities industry. Rice served as Aequitass executive vice president and president of wealth management. But I think my clients will be thrilled. An official website of the United States government. 04/19/2019 10 Minutes of Proceedings: First Appearance on Information and Arraignment held before Magistrate Judge Stacie F. Beckerman as to Defendant Brian A. Oliver on 4/19/2019. He was the British honorary consul to Portland. Defendant advised of rights. Cookie Settings/Do Not Sell My Personal Information. (Tape #FTR-9B) (gw) (Entered: 04/19/2019) Jesenik will have to pay $1.57 million in disgorgement, interest and penalties, while Oliver will pay $235,928 in disgorgement and interest, and Gillis will pay a $300,000 civil penalty. But they made good money for Aequitas and its investors. Realized Launches Game Changing Platform for Direct Real Estate Investment, The CFP Board Calls Out Crypto in Code of Ethics and Standards, Modern Slavery Act Transparency Statement. Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023. ) or https:// means youve safely connected to the .gov website. Ledger left the company in 2005 in a highly controversial and public way. 18:1957 CONSPIRACY TO COMMIT MONEY LAUNDERING Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. The high-interest loans were terrible for students. But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. [More: Aequitas meltdown underscores the importance of due diligence, caution]. Some money from new investors was allegedly used to pay earlier investors Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. A .gov website belongs to an official government organization in the United States. Jesenik also must pay a civil penalty of $625,000. Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . 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Marketing? Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. 2023 Advance Local Media LLC. A .gov website belongs to an official government organization in the United States. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. Brian provides Cathedral particular expertise in leading Merger & Acquisition transactions and arranging Corporate Finance solutions for its clients, after having been involved in extensive transactions of all sizes throughout his career. The SECs complaint, filed on March 10, 2016, alleged that Aequitas Management and four affiliates defrauded more than 1,500 investors nationwide when that money was being used primarily to cover operating losses and to pay earlier investors in a Ponzi-like fashion, according to an April 24 SEC press release on the final judgment. In a separate proceeding, the SEC barred the three from the securities industry. Aequitas also had tentacles spread throughout the RIA world. The Lake Oswego, Ore.-based investment management firm was the subject of a Securities and Exchange Commission complaint filed in 2016 alleging that Aequitas defrauded more than 1,500 investors into believing they were putting their money into health care, education and transportation investments when their money was being used primarily in a Ponzi-like fashion. Then Corinthian went bankrupt. They are Brian Rice, who formerly headed Key Banks operations in much of Oregon, Andrew MacRitchie, The Scotland native who came to Portland when when Scottish Power purchased PacifiCorp, and N. Scott Gillis, the former chief financial officer. Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. View limitations & usage restriction, Breaking news, analysis and cutting edge commentary from our award-winning team and leading industry voices, The latest news and other relevant content from selected Citywire partners. Government summarized charges and terms of plea agreement. Recently, MacRitchie has incurred defense costs in connection with the DOJ investigation and expects to continue to incur Defense Costs in that matter, his lawyer said in a court filing. Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. The company opened slick new offices in New York City. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. Email USAO-OR. It is free to register and only takes a minute or two. In anticipation of the institution of these proceedings, Respondent has submitted an Offer . Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. The SEC alleges that CEO Robert J. Jesenik and executive vice president Brian A. Oliver were well aware of the firm's dire financial status but continued to solicit hundreds of millions of dollars in investments to stave off the firm's complete collapse. Please sign in or register to comment. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. Use of editorial content without permission is strictly prohibited|All rights reserved, Securities and Exchange Commission complaint filed in 2016, Aequitas meltdown underscores the importance of due diligence, caution, Fintech Bytes: RBC selects Vestwell, Riskalyze partners with Opto, Morgan Stanley ESG ETFs get the cold shoulder, HSA participants fail to take full advantage of tax trifecta, Investors keep dumping Blackstone REIT shares, Striving to win at compassion? Brian Oliver, Aequitas Capital's longtime No. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. The agency on Wednesday barred Aequitas partial owner and chief executive Robert Jesenik, 60, partial owner and executive vice president Brian Oliver, 55, and former chief financial officer N. Forgot your password?