Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. Investors agree to $234.6M in settlements in Aequitas was - Portland Have a question about Government Services? 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. A lock ( In these roles, he was responsible for directing Aequitass overall financial policies and accounting functions. Aequitas Capital Management Lawsuit - Law Meg An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. 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. 2023 Advance Local Media LLC. 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. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. If the sentencing materials are not received on time or the Court is not advised that none will be filed, the sentencing may be rescheduled. Oliver is the first former Aequitas Capital executive to be criminally charged. A .gov website belongs to an official government organization in the United States. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . 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. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. YouTubes privacy policy is available here and YouTubes terms of service is available here. He pled guilty but has not yet been sentenced. Email USAO-OR. It is believed that since he was ousted from Aequitas, Jesenik has been. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. But they made good money for Aequitas and its investors. Gillis was the second Aequitas chief financial officer. Aequitas Settles With SEC for $540 Million as Three Top - RIAIntel Investors had been bilked out of hundreds of millions of dollars, the SEC said. Gillis was the second Aequitas chief financial officer. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. More Local News to Love Start today for 50% off Expires 3/6/23. Secure .gov websites use HTTPS Another was a utility executive who helped change Portlands business landscape. (kms) (Entered: 04/19/2019), Home Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. 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. One of Aequitas biggest moneymakers disappeared almost overnight. II. 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. 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. Get started today before this once in a lifetime opportunity expires. In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. Gillis, who was previously indicted for conspiring to submit false statements to a federally insured creditor, was the companys chief operating officer and chief financial officer. Jesenik founded the Aequitas group of companies, and, as chief executive officer, controlled the organizations structure and had ultimate decision-making authority over company activities. But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. I have really enjoyed working with Seth, Brian and the Cathedral team. RIA Intel is part of Delinian. 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. An official website of the United States government. Marketing? SECURITIES AND EXCHANGE COMMISSION v. AEQUITAS MANAGEMENT, LLC - Leagle Signed on 4/19/2019 by Judge Michael W. Mosman. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. The Oregon firm thought it had hit the motherlode when it got into the college debt business. 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 Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. Longtime Aequitas No. It began to default on the interest payments owed its legion of mom and pop investors. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. Brian Oliver, Aequitas Capital's longtime No. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. 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). All material subject to strictly enforced copyright laws. Oliver faces a maximum sentence of 30 years in prison, a $250,000 fine or twice the gross . (Entered: 04/19/2019) Re: United States of America v. Brian A. Oliver - MoreLaw In the shadow of a turbulent future, The Bloomberg New Economy Forum brought together world leaders for face-to-face discussions on the global threats we face. Plea Petition and Plea Agreement signed and accepted by the Court. 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. Defunct Aequitas misled investors, cooked books, ran Ponzi - oregonlive Former Aequitas Owner and Executive Vice President . Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. Luminaries from the downtown business establishment wanted to join the team. Counsel Present for Plaintiff: Scott Bradford, Ryan Bounds. 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. He is scheduled to be sentenced on Aug. 5. PORTLAND, Ore.U.S. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. | Advertising Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. A .gov website belongs to an official government organization in the United States. A .gov website belongs to an official government organization in the United States. Brian Oliver - Senior Business Advising Specialist - Cathedral Consulting Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". There are also questions about whether Jesenik and other defendants spent the money appropriately. 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. The Government does not seek detention and Defendant is released on conditions. 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. PDF SEC Complaint: Aequitas Management, LLC; Aequitas Holdings, LLC Please sign in or register to comment. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. Aequitas did make legitimate investments. If you need help with finances, they've got that covered. | Editor They also have people who have helped raise money and sell businesses so they can help with that too. Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. The company opened slick new offices in New York City. Lock Investment adviser: Aequitas lied to investors, hid - oregonlive | Privacy Statement. Defendant waived reading of the Information. 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. Attorneys in Aequitas Capital fraud case spar over Oregon regulator who They agreed to plead guilty and cooperate with the government.. As previously reported by RIA Intel, Aequitas claimed to manage $1.67 billion before it collapsed, which would likely make its downfall Oregons biggest-ever investment scandal. A lock ( There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. 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. Government summarized charges and terms of plea agreement. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. Cookie Settings/Do Not Sell My Personal Information. Oliver, former second-in-command at Aequitas, pleads guilty to fraud All rights reserved (About Us). Prosecutors' wide net: Prominent Portland executives sucked into It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. More Local News to Love Start today for 50% off Expires 3/6/23. 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. Guilty pleas entered as to Counts 1 and 2 of the Information. 2020 update: Aequitas investors recoup some money. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Some money from new investors was allegedly used to pay earlier investors 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. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. 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. Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. The sentencing for former Aequitas Capital executive Brian Oliver has been moved again. Email USAO-OR. Ledger left the company in 2005 in a highly controversial and public way. Gillis was charged alongside former Aequitas CEO Robert J. Jesenik, 62, of West Linn, Oregon, and former Aequitas executives Brian K. Rice, 55, of Portland, and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Florida. Redmond adviser caught in Oregon firm's $600M financial collapse 1000 SW Third Ave Suite 600 Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. Sam Kauffman is MacRitchies attorney. | Store Main Office: 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. 0. That has changed as the criminal case nears the indictment stage. 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. SEC bars Aequitas execs after $540m judgement against Oregon firm 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. Portland, Oregon 97204 (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. 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. MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. 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. PDF Former Aequitas Owner and Executive Vice President Pleads Guilty - DOL Attorney Billy J. Williams announced today that Brian A. Oliver, a former owner and executive vice president of Aequitas Management, LLC and several other Aequitas-related companies has pleaded guilty to conspiring to commit mail and wire fraud and money laundering. Rice acknowledged in court filings that he's a suspect in the case. | Link Errors 18:1957 CONSPIRACY TO COMMIT MONEY LAUNDERING The company's general counsel just quit. 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. Lock Oliver was also charged criminally for his conduct. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Seven years ago, it was easy to believe in Aequitas. They are also prohibited from violating the SECs antifraud provisions. They've got that too. He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. 13. (See separate order.) ) or https:// means youve safely connected to the .gov website. Cookie Settings/Do Not Sell My Personal Information. A lock ( Official websites use .gov The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. Court orders Aequitas to disgorge $453 million in fraud case 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 PORTLAND, Ore.U.S. 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.. 2 executive Brian Oliver pleaded guilty to the same charges in April. Defendant proceeds as named. Court finds guilty pleas to be knowing and voluntary. Sentencing materials are due no later than 7/31/2019. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. It was the beginning of the end for the high-flying company.