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. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. | Editor As Aequitas grew, its profile in the community also increased. 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. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Share sensitive information only on official, secure websites. 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. If you missed the last issue of InvestmentNews, you can access it here. 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. The new indictments bring to six the number of former Aequitas executives charged with defrauding investors. 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. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. Cookie Settings/Do Not Sell My Personal Information. They agreed to plead guilty and cooperate with the government.. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. Gillis was the second Aequitas chief financial officer. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. He pled guilty but has not yet been sentenced. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. He was even on the board of the Arlington Club. II. Reset here, 1999 - 2023 citywire.com. Have a question about Government Services? According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. 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 There was no more hiding the fact that Aequitas was broke. Once a high-flying Lake Oswego . In a divorce settlement filed with the court, it's. [More: Aequitas meltdown underscores the importance of due diligence, caution]. He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. Court finds defendant capable and competent to enter plea. A lock ( RIA Intel is part of Delinian. They also have people who have helped raise money and sell businesses so they can help with that too. Attorneys for the District of Oregon. 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. Probation. The company had three policies each for $5 million of coverage. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. One of Aequitas biggest moneymakers disappeared almost overnight. They've got that too. PORTLAND, Ore.U.S. Defendant waived reading of the Information. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. Learn more about reprints and licensing for this article. Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. There are also questions about whether Jesenik and other defendants spent the money appropriately. But prosecutors allege the Aequitas executives lied about the firms financial performance. 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. 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. The Government does not seek detention and Defendant is released on conditions. 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. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. 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. 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. Some money from new investors was allegedly used to pay earlier investors 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. Defendant advised of rights. (1) The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. 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.. 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). Counsel Present for Defendant: Whitney Boise, Kendra Matthews. 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. Now both have been sucked into the criminal fraud investigation of the collapsed firm. Aequitas collapsed in 2016 owing about $600 million to investors. 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. The company's general counsel just quit. Attorneys for the District of Oregon. 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. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Please sign in or register to comment. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. It began to default on the interest payments owed its legion of mom and pop investors. ORDER granting the Government's oral motion to unseal the case. Mike Esler, another attorney for Aequitas investors, credited federal prosecutors for sticking with an extremely complex case all the way to the indictment of Aequitas leader Jesenik. 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. Waiver of indictment signed and accepted by the Court. He was the British honorary consul to Portland. Mitsubishi Signs $1.9b Commuter Rail Deal With Manila: Nikkei, AllianceBernstein Wins China Approval to Set Up Mutual Fund Unit, Sorry, Fed, Most US Mortgage Rates Were Locked in During Pandemic Lows, Fed Says MoreRate Hikes Are Needed to Curb Inflation, US Service Sector Expands More Than Forecast Suggesting Hiring Success, VW Will Build a $2 Billion Electric Truck and SUV Plant in South Carolina, Saudi Wealth Fund in Talks to Buy Rocco Forte Hotels Stake, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, SoftBanks Son to Join Modi at Oyo Founders Wedding Gala, US-Sanctioned Huawei Makes a Show of Force at Mobile Conference, Hong Kong Court Convicts Activists Behind Tiananmen Vigil, Bidens About-Face on DC Crime Bill Shows Democrats on Defensive, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, NYC TikTok Dating Diary Chronicles Love in the Time of Inflation, Tom Sizemore, 'Saving Private Ryan' actor, dies at 61, AP Says, The Exhibit Reality TV Show PittingArtist Against ArtistIs No Masterpiece, Video Roundup: Opinions Must-See Footage of the Week, How Democrats Got Away From Third Way Politics, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Biden Gives Medal of Honor to Trailblazing Special Forces Member, Panic Over Metals for EVs Goes All the Way to Automakers C-Suites, Rivian Tells Staff EV Output May Be 24% More Than Forecast, What Do You Want to See in a Covid Memorial? Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. 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. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. 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. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon. Have a question about Government Services? 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. All rights reserved (About Us). Gillis was the second Aequitas chief financial officer. 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. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. 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. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. Seven years ago, it was easy to believe in Aequitas. Jesenik also must pay a civil penalty of $625,000. Despite that advice, on or about January 15, 2016, Gillis signed and, with others, submitted to Wells Fargo an advance notice, requesting that Wells Fargo advance $4.2 million to Aequitas with a false certification that Aequitas was not confronting a potential event of default. 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. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. PORTLAND, Ore.U.S. | Link Errors PORTLAND, Ore.U.S. He committed suicide in an attempt to hide . The Oregonian first reported the criminal charges and guilty plea. (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. The sentencing for former Aequitas Capital executive Brian Oliver has been moved again. | Privacy Statement. They also have people who have helped raise money and sell businesses so they can help with that too. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. (kms) (Entered: 04/19/2019), Home 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. Investors had been bilked out of hundreds of millions of dollars, the SEC said. Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. 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. 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. (Entered: 04/19/2019) Share sensitive information only on official, secure websites. Collectively, the defendants also failed to disclose other critical facts about the company, including its near-constant liquidity and cash-flow crises, the use of investor money to repay other investors and to defray operating expenses, and the lack of collateral to secure funds. 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? 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. They are also prohibited from violating the SECs antifraud provisions. They agreed to plead guilty and cooperate with the government. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. 2 executive Brian Oliver pleaded guilty to the same charges in April. MacRitchie was the companys executive vice president and chief compliance officer. Scott Bradford is the lead prosecutor on the case. 2023 Advance Local Media LLC. All material subject to strictly enforced copyright laws. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Main Office: Official websites use .gov 04/19/2019 11 Waiver of Indictment by Brian A. Oliver (schm) (Entered: 04/19/2019) | Advertising Longtime Aequitas No. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. Aequitas also had tentacles spread throughout the RIA world. PORTLAND, Ore.U.S. Until now, Rice and MacRitchie have faced minimal legal expenses. 2023 InvestmentNews LLC. Previously, Brian was an Executive VP, Business Development at Alternative Asset Management. It is believed that since he was ousted from Aequitas, Jesenik has been. Gillis was the second Aequitas chief financial officer. 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. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. 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. 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. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. 1000 SW Third Ave Suite 600 In anticipation of the institution of these proceedings, Respondent has submitted an Offer . Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. Rice headed Key Bank in Oregon for 12 years. 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. 2023 RIA Intel, an Institutional Investor Publication. But they made good money for Aequitas and its investors. 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. Other funds went to pay their salaries. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. 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. Portland, Oregon 97204 Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. PORTLAND, Ore.U.S. Bob Jesenik has not been criminally charged. A locked padlock Luminaries from the downtown business establishment wanted to join the team. 1000 SW Third Ave Suite 600 Community Rules apply to all content you upload or otherwise submit to this site. From June 2014 through February 2016, Oliver and others 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. There was the motorcycle leasing company. Brian Oliver, Aequitas Capital's longtime No. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . 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. Marketing? Its been a long time coming, Kayser said. They both opted not to talk. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . ORDER Presentence Report to be prepared by U.S. It is free to register and only takes a minute or two. Signed on 4/19/2019 by Judge Michael W. Mosman. Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. Ledger left the company in 2005 in a highly controversial and public way. Secure .gov websites use HTTPS An official website of the United States government. He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. brian oliver, aequitas brian oliver, aequitas Home Realizacje i porady Bez kategorii brian oliver, aequitas The company's general counsel just quit. On March 10, 2016, the Securities and Exchange Commission (" SEC ") filed a complaint in this Court against the Entity Defendants 1 and three individual defendants, Robert J. Jesenik, Brian A. Oliver, and N. Scott Gillis. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. The high-interest loans were terrible for students. Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. ORDER Defendant released on previous conditions. But I think my clients will be thrilled. 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. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Get started today before this once in a lifetime opportunity expires. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. 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? That has changed as the criminal case nears the indictment stage. ) or https:// means youve safely connected to the .gov website. But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. 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. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. 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. Rice served as Aequitass executive vice president and president of wealth management. He is scheduled to be sentenced on Aug. 5. 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. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. Youve missed the point, Anxiety over tax refunds on the rise, Bankrate.com study shows, Gensler steps up warnings to money managers. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. In reporting on the Aequitas claim, a local publication, The Oregonian, wrote: "Aequitas never gained the local reputation for integrity and savvy that its executives longed for. In a separate proceeding, the SEC barred the three from the securities industry. An official website of the United States government. Oliver faces a maximum sentence of 30 years in prison, a $250,000 fine or twice the gross . As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. Government summarized charges and terms of plea agreement. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. 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. 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. Its not just the amount of insurance money that went to Jesenik that concerns the receiver. 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. Accounting giant Deloitte, stock trader T.D. Email USAO-OR. 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.
Caged Bird Feeders For Cardinals, Moringa, Garlic And Ginger, Que Responder Cuando Te Dicen Me Alegro Por Ti, How Do You Make A Clicker Game On Scratch?, Hive Thermostat Discontinued, Articles B