SEC Charges Oregon-Based Investment Group and Executives With 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 2023 RIA Intel, an Institutional Investor Publication. Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. 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. Accounting giant Deloitte, stock trader T.D. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. 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. Brian Rice and Andrew MacRitchie left their corporate posts for jobs at Aequitas Capital. Lock The Government does not seek detention and Defendant is released on conditions. Attorney Billy J. 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. All Rights Reserved. | Advertising The court also required Robert J. Jesenik, the firms former CEO, and Brian A. Oliver, its former executive vice president, to pay $940,806 and $235,928, respectively, in disgorgement and interest. 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. From June 2014 through February 2016, the former executives solicited investors by misrepresenting the companys use of investor money, the financial health and strength of Aequitas and its related companies, and the risks associated with its investments and investment strategies. Sentencing for No. 2 Aequitas executive Brian Oliver moved to February The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. I have really enjoyed working with Seth, Brian and the Cathedral team.. His attorneys have submitted bills for at least 2.7 million, far more than any other defendant. Oliver was also charged criminally for his conduct. 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. Bob Jesenik, the co-founder and face of the defunct Lake Oswego investment firm Aequitas Management, was indicted Tuesday on charges he defrauded hundreds of its former clients. 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. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. 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. Community Rules apply to all content you upload or otherwise submit to this site. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. Defendant proceeds as named. Aequitas Capital Management Lawsuit - Law Meg It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. SECURITIES AND EXCHANGE COMMISSION v. AEQUITAS MANAGEMENT, LLC - Leagle If you purchase a product or register for an account through one of the links on our site, we may receive compensation. 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. Some money from new investors was allegedly used to pay earlier investors 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. Sam Kauffman is MacRitchies attorney. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. PORTLAND, Ore.U.S. Jesenik also must pay a civil penalty of $625,000. Oliver, former second-in-command at Aequitas, pleads guilty to fraud Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. | Sign In, Verdict Corrections Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. RIA Intel is part of Delinian. There was no more hiding the fact that Aequitas was broke. But prosecutors allege the Aequitas executives lied about the firms financial performance. 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. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. 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. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. There was the motorcycle leasing company. If you missed the last issue of InvestmentNews, you can access it here. Bob Jesenik, three other former Aequitas executives - Oregonlive Cookie Settings/Do Not Sell My Personal Information. It is free to register and only takes a minute or two. SEC files Complaint against Aequitas Management - Fishman Haygood He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. 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. 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. Also charged are Nelson Scott Gillis, 67, of Lake Oswego, Oregon; Brian K. Rice, 54, of Portland; and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Florida. 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). Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. Oliver faces a maximum sentence of 30 years in prison, a $250,000 fine or twice the gross . One of Aequitas biggest moneymakers disappeared almost overnight. 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. 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. Counsel Present for Plaintiff: Scott Bradford, Ryan Bounds. Aequitas specialized in debt. All rights reserved (About Us). Owler Reports - KCC: Aequitas Capital No. 2 Brian Oliver pleads guilty (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) 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. 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. 2020 update: Aequitas investors recoup some money. PDF Former Aequitas Owner and Executive Vice President Pleads Guilty - DOL Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. They are also prohibited from violating the SECs antifraud provisions. ORDER Defendant released on previous conditions. ) or https:// means youve safely connected to the .gov website. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. 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. Scott Gillis, 66, from the securities industry for their roles in a scheme that bilked hundreds of millions from investors. Claim Data and Trends - EPIC Insurance Brokers & Consultants Other funds went to pay their salaries. PORTLAND, Ore.U.S. Court orders Aequitas to disgorge $453 million in fraud case 2023 Advance Local Media LLC. Rice acknowledged in court filings that he's a suspect in the case. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. Share sensitive information only on official, secure websites. 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. A .gov website belongs to an official government organization in the United States. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. Longtime Aequitas No. Official websites use .gov I have really enjoyed working with Seth, Brian and the Cathedral team. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. Our team of expertsis available to help your business build value in a variety of ways including: assessments, strategic planning, corporate financing, M&A support, market research, growth marketingandmuch more! SEC v. Aequitas Management, LLC; Aequitas Holdings, LLC; Aequitas Signed on 4/19/2019 by Judge Michael W. Mosman. 2023 Advance Local Media LLC. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. Rice headed Key Bank in Oregon for 12 years. Then Corinthian went bankrupt. Attorneys in Aequitas Capital fraud case spar over Oregon regulator who Brian Oliver, Aequitas Capital's longtime No. Lock 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. A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. All rights reserved (About Us). Have a question about Government Services? He was even on the board of the Arlington Club. He pled guilty but has not yet been sentenced. If you need help with finances, they've got that covered. CEO Robert Jesenik will have to pay $1.57 million to settle fraud charges, while executive vice president Brian A. Oliver and former CFO N. Scott Gillis will each have to pay hundreds of thousands of dollars as part of a consent decree finalized in Oregon federal court on April 13. (1) Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. Official websites use .gov YouTubes privacy policy is available here and YouTubes terms of service is available here. U.S. Attorney's Office, District of Oregon, Former Aequitas CEO and Senior Executives Indicted in Fraud and Money Laundering Conspiracy, Forsage Founders Indicted in $340M DeFi Crypto Scheme, Russian Cryptocurrency Money Launderer Pleads Guilty, Former Fugitive Wanted in Oregon for Real Estate Scam Pleads Guilty, Former Aequitas CEO and Senior Executives Indicted In Fraud and Money Laundering Conspiracy. They've got that too. Investors had been bilked out of hundreds of millions of dollars, the SEC said. Waiver of indictment signed and accepted by the Court. The new indictments bring to six the number of former Aequitas executives charged with defrauding investors. The company's general counsel just quit. Learn more about reprints and licensing for this article. They remain active in their local church as well as volunteer with several other local non-profits, and in their leisure time enjoy hiking and camping in their travel trailer when not otherwise spending time with their two adult children. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Community Rules apply to all content you upload or otherwise submit to this site. He is scheduled to be. An official website of the United States government. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. A lock ( The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. Brian A. Oliver, age 51, resides in Aurora, Oregon. U.S. Attorney's Office, District of Oregon, Former Aequitas Senior Executive and Chief Financial Officer Pleads Guilty to Making False Statements to a Creditor, Forsage Founders Indicted in $340M DeFi Crypto Scheme, Russian Cryptocurrency Money Launderer Pleads Guilty, Former Fugitive Wanted in Oregon for Real Estate Scam Pleads Guilty, Former Aequitas Senior Executive and Chief Financial Officer Pleads Guilty To Making False Statements To a Creditor. District of Oregon All material subject to strictly enforced copyright laws. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. In addition, it said Gillis agreed to be permanently suspended from appearing and practicing before the SEC as an accountant and cannot work as an auditor for pubic companies. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. 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? Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. Re: United States of America v. Brian A. Oliver - MoreLaw Bob Jesenik has not been criminally charged. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. Aequitas investors filed a $350 million class-action lawsuit in April 2016, less than a month after the SEC charged Aequitas Management LLC and four affiliates, as well as three executivesCEO Robert Jesenik, executive vice president Brian Oliver, and CFO and chief operating officer N. Scott Gilliswith hiding the deteriorating financial This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Reset here, 1999 - 2023 citywire.com. PDF SEC Complaint: Aequitas Management, LLC; Aequitas Holdings, LLC This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. PDF United States of America Securities and Exchange Commission Investment Defendant waived reading of the Information. Email USAO-OR. Now both have been sucked into the criminal fraud investigation of the collapsed firm. 18:1957 CONSPIRACY TO COMMIT MONEY LAUNDERING Previously, Brian was an Executive VP, Business Development at Alternative Asset Management. Share sensitive information only on official, secure websites. Former Aequitas CEO and Senior Executives Indicted in Fraud and Money Aequitas collapsed in 2016 owing about $600 million to investors. Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. 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. A Salem, Oregon man pleaded guilty today for using Twitter to threaten violence against employees of Robinhood Markets, Inc., an online financial services company based in Menlo Park, California. CEO Robert Jesenik will have to pay $1.57 million to settle fraud charges, while executive vice president Brian A. Oliver and former CFO N. Scott Gillis will each have to pay hundreds of thousands of dollars as part of a consent decree finalized in Oregon federal court on April 13. Seven years ago, it was easy to believe in Aequitas. A locked padlock Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023. | Store Attorneys for the District of Oregon. MacRitchie, the former utility executive, was the picture of respectability. 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. 1000 SW Third Ave Suite 600 Aequitas investors lost about $600 million after the collapse. | Recent Lawyer Listings Once a high-flying Lake Oswego . Probation. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. Ledger left the company in 2005 in a highly controversial and public way. Marketing? Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . Much of the cash went to make the payments owed to other investors. The Oregonian first reported the criminal charges and guilty plea. Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. | Articles The complaint also alleges that Aequitas Capital Management Inc. and Aequitas Investment Management LLC violated Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder, and that Jesenik, Oliver, and Gillis aided and abetted the violations of Aequitas and the affiliated entities. But they made good money for Aequitas and its investors. In anticipation of the institution of these proceedings, Respondent has submitted an Offer . Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. 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. 0. Investors agree to $234.6M in settlements in Aequitas was - Portland Rice served as Aequitass executive vice president and president of wealth management. But much of that money has already been spent. 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. But I think my clients will be thrilled. Secure .gov websites use HTTPS But this one was worse. 13. An official website of the United States government. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. (Tape #FTR-9B) (gw) (Entered: 04/19/2019) | Link Errors Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. He argues he needs the money to help defray losses suffered by Aequitas investors. 3 Executives of Aequitas Management LLC Charged for Fraud He committed suicide in an attempt to hide . ORDER granting the Government's oral motion to unseal the case. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. 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. Redmond adviser caught in Oregon firm's $600M financial collapse Aequitas did make legitimate investments. B. [More: Aequitas meltdown underscores the importance of due diligence, caution]. ORDER Presentence Report to be prepared by U.S. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. For 23 years, Brian Oliver was the classic second-in-command at Aequitas Management LLC, the earnest, low-key straight arrow to the company's colorful alpha-dog CEO Bob Jesenik. He was the British honorary consul to Portland. He is scheduled to be sentenced on Aug. 5. 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. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Please sign in or register to comment. 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.. SEC Posts Notice of Covered Action Regarding Case Against Aequitas No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. It is believed that since he was ousted from Aequitas, Jesenik has been. Guilty pleas entered as to Counts 1 and 2 of the Information. On January 26, 2023, a California man who evaded federal authorities for more than two decades after being convicted at trial and who was wanted in District of Oregon for District of Oregon Aequitas also had tentacles spread throughout the RIA world. 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. Until now, Rice and MacRitchie have faced minimal legal expenses. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. Former Aequitas CEO testifies in divorce trial The Oregon firm thought it had hit the motherlode when it got into the college debt business. Portland, Oregon 97204 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) Scott Bradford is the lead prosecutor on the case. Main Office: Defendant sworn and examined. If you need help with finances, they've got that covered. PORTLAND, Ore.U.S.
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