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. His attorneys have submitted bills for at least 2.7 million, far more than any other defendant. 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. Brian Oliver, Aequitas Capital's longtime No. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. Share sensitive information only on official, secure websites. 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. Accounting giant Deloitte, stock trader T.D. 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. MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. Attorneys for the District of Oregon. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. All three are permanently barred from the securities industry. I have really enjoyed working with Seth, Brian and the Cathedral team. Defendant sworn and examined. Much of the cash went to make the payments owed to other investors. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. 1000 SW Third Ave Suite 600 One of Aequitas biggest moneymakers disappeared almost overnight. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. Greenspan uncovered a remarkable email exchange between Aequitas co-founder Brian Oliver and Andrew MacRitchie, the firm's one-time chief compliance officer, which seems to indicate they were. Email USAO-OR. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon. Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. 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. The firm purchased or invested in other financial firms, many of them glorified debt collectors. The high-interest loans were terrible for students. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. 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. In a separate proceeding, the SEC barred the three from the securities industry. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. 2023 Advance Local Media LLC. Longtime Aequitas No. 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. If you need help with finances, they've got that covered. 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). Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. 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. Counsel Present for Defendant: Whitney Boise, Kendra Matthews. All Rights Reserved. Portland, Oregon 97204 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. Defendant waived reading of the Information. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. That has changed as the criminal case nears the indictment stage. 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. Learn more about reprints and licensing for this article. 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. II. More Local News to Love Start today for 50% off Expires 3/6/23. Aequitas investors lost about $600 million after the collapse. (chso). 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. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. In these roles, he was responsible for directing Aequitass overall financial policies and accounting functions. 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. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. Attorneys for the District of Oregon. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. Official websites use .gov Seven years ago, it was easy to believe in Aequitas. 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. Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. Gillis was the second Aequitas chief financial officer. By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. PORTLAND, Ore.U.S. 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. It was the beginning of the end for the high-flying company. Brian has been a Senior Advisor with Cathedral Consulting since 2017. But it appears they are far from done. SEC charges advisor over Aequitas conflicts of interest. Attorneys for the District of Oregon. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. (Tape #FTR-9B) (gw) (Entered: 04/19/2019) They've got that too. But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. 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. 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. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. Until now, Rice and MacRitchie have faced minimal legal expenses. 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. The company opened slick new offices in New York City. 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. All three are permanently barred from the securities industry. An official website of the United States government. ) or https:// means youve safely connected to the .gov website. 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. | Advertising 1000 SW Third Ave Suite 600 (kms) (Entered: 04/19/2019), Home Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023. All rights reserved (About Us). Rice included in his court filings a copy of an April 23 letter from the U.S. Attorneys office in Portland informing him that you are a subject of a federal criminal investigation concerning fraud that occurred at Aequitas.. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. It began to default on the interest payments owed its legion of mom and pop investors. YouTubes privacy policy is available here and YouTubes terms of service is available here. Oliver was also charged criminally for his conduct. The Oregonian first reported the criminal charges and guilty plea. Oliver faces a maximum sentence of 30 years in prison, a $250,000 fine or twice the gross . It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. It is free to register and only takes a minute or two. 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. A lock ( Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. 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). 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. Sentencing is set for 8/5/2019 at 9:00AM in Portland before Judge Michael W. Mosman. An official website of the United States government. Youve missed the point, Anxiety over tax refunds on the rise, Bankrate.com study shows, Gensler steps up warnings to money managers. 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. Investors had been bilked out of hundreds of millions of dollars, the SEC said. Sam Kauffman is MacRitchies attorney. An official website of the United States government. 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. | Editor 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. Luminaries from the downtown business establishment wanted to join the team. (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. A lock ( By late 2015, Aequitas was suffering one of its periodic cash flow crises. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. 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. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. Its not just the amount of insurance money that went to Jesenik that concerns the receiver. 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. 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. Aequitas also had tentacles spread throughout the RIA world. The Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. A locked padlock They are also prohibited from violating the SECs antifraud provisions. Marketing? A locked padlock Court finds defendant capable and competent to enter plea. ) or https:// means youve safely connected to the .gov website. Share sensitive information only on official, secure websites. 2 executive Brian Oliver pleaded guilty to the same charges in April. 0. The Oregon firm thought it had hit the motherlode when it got into the college debt business. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. PORTLAND, Ore.U.S. 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. Have a question about Government Services? 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. Official websites use .gov Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. Reset here, 1999 - 2023 citywire.com. On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. 13. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. (See separate order.) 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. 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. As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. Once a high-flying Lake Oswego . 2023 RIA Intel, an Institutional Investor Publication. Rice, a longtime Portland banker who eventually became regional president for Key Bank, gave up the big downtown office to join Aequitas in 2014. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. The sentencing for former Aequitas Capital executive Brian Oliver has been moved again. Share sensitive information only on official, secure websites. Brian Oliver, Aequitas Capital's longtime No. Counsel Present for Plaintiff: Scott Bradford, Ryan Bounds. 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. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. Former Aequitas Owner and Executive Vice President . Rice headed Key Bank in Oregon for 12 years. A locked padlock Marketing? In a divorce settlement filed with the court, it's. Portland, Oregon 97204 Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. (Entered: 04/19/2019) Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. 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. Probation. YouTubes privacy policy is available here and YouTubes terms of service is available here. | Sign In, Verdict Corrections Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. 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? With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. A .gov website belongs to an official government organization in the United States. All material subject to strictly enforced copyright laws. He pled guilty but has not yet been sentenced. 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. Jesenik also must pay a civil penalty of $625,000. Main Office: District of Oregon MacRitchie was the companys executive vice president and chief compliance officer. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. 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. 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. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. 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. But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. 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 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. 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. The company's general counsel just quit. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. A lock ( Email USAO-OR. 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. 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? He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. 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 Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . RIA Intel is part of Delinian. Portland, Oregon 97204 ORDER Presentence Report to be prepared by U.S. Guilty pleas entered as to Counts 1 and 2 of the Information. This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. 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 He declined to comment. B. Some money from new investors was allegedly used to pay earlier investors Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. Please sign in or register to comment. Community Rules apply to all content you upload or otherwise submit to this site. There was the commercial lender. Have a question about Government Services? Previously, Brian was an Executive VP, Business Development at Alternative Asset Management. They also have people who have helped raise money and sell businesses so they can help with that too. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". 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. 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 Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. 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. But prosecutors allege the Aequitas executives lied about the firms financial performance. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. Then Corinthian went bankrupt. ORDER Defendant released on previous conditions. 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.
Il Makiage Shade 60 Equivalent,
How To Hide Blank Columns In Power Bi Matrix,
Police Seized Boats For Sale,
How Many Bodies Have Been Found In The Detroit River,
Articles B
