Guilty pleas entered as to Counts 1 and 2 of the Information. According to court documents, Oliver, 54, of Aurora, Oregon, and unnamed co-conspirators used the Lake Oswego, Oregon, based 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. Probation. 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? They agreed to plead guilty and cooperate with the government. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. Court finds guilty pleas to be knowing and voluntary. In a divorce settlement filed with the court, it's. Some money from new investors was allegedly used to pay earlier investors Attorneys for the District of Oregon. 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. Secure .gov websites use HTTPS Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. 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. (1) It is free to register and only takes a minute or two. 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. Scott Bradford is the lead prosecutor on the case. 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. | Recent Lawyer Listings Official websites use .gov B. | Store 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 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. In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. A former senior executive and chief financial officer of Aequitas Management, LLC, and several other entities formerly owned by Aequitas, pleaded guilty today to submitting a false statement to an Aequitas creditor to obtain a $4.2 million loan for the now-defunct company. Brian Oliver, Aequitas Capital's longtime No. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. Brian A. Oliver, age 51, resides in Aurora, Oregon. 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. On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . 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. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. Another was a utility executive who helped change Portlands business landscape. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. It is believed that since he was ousted from Aequitas, Jesenik has been. YouTubes privacy policy is available here and YouTubes terms of service is available here. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. Aequitas also had tentacles spread throughout the RIA world. But this one was worse. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. Cookie Settings/Do Not Sell My Personal Information. 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. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. PORTLAND, Ore.U.S. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. I have really enjoyed working with Seth, Brian and the Cathedral team.. 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. Oliver is the first former Aequitas Capital executive to be criminally charged. Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. An official website of the United States government. Rice headed Key Bank in Oregon for 12 years. PORTLAND, Ore.U.S. According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. In April, Brian Oliver, Aequitas. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. Gillis was the second Aequitas chief financial officer. Sam Kauffman is MacRitchies attorney. Defendant advised of rights. Brian has been a Senior Advisor with Cathedral Consulting since 2017. Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. 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. The company had three policies each for $5 million of coverage. 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. Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. They are also prohibited from violating the SECs antifraud provisions. 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. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. 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. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. 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. Have a question about Government Services? If you need help with finances, they've got that covered. But much of that money has already been spent. This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. All material subject to strictly enforced copyright laws. 1000 SW Third Ave Suite 600 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. (chso). 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. 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. The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. Youve missed the point, Anxiety over tax refunds on the rise, Bankrate.com study shows, Gensler steps up warnings to money managers. 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. 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. | Advertising On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. 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. Gillis was the second Aequitas chief financial officer. By late 2015, Aequitas was suffering one of its periodic cash flow crises. SEC charges advisor over Aequitas conflicts of interest. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. ) or https:// means youve safely connected to the .gov website. Rice, a longtime Portland banker who eventually became regional president for Key Bank, gave up the big downtown office to join Aequitas in 2014. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. 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. Longtime Aequitas No. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. Brian provides Cathedral particular expertise in leading Merger & Acquisition transactions and arranging Corporate Finance solutions for its clients, after having been involved in extensive transactions of all sizes throughout his career. The default came to attention of the U.S. Securities and Exchange Commission, which sued Aequitas in March 2016 and got the company shut down. The 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. Oliver faces a maximum sentence of 30 years in prison, a $250,000 fine or twice the gross monetary gains or losses resulting from his crimes, and three years supervised release. Lock 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). RIA Intel is part of Delinian. 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. 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. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. Former Aequitas Owner and Executive Vice President . Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. MacRitchie, the former utility executive, was the picture of respectability. Main Office: 2023 InvestmentNews LLC. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. Portland, Oregon 97204 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. (kms) (Entered: 04/19/2019), Home Aequitas investors lost about $600 million after the collapse. 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. 2023 RIA Intel, an Institutional Investor Publication. | Link Errors Aequitas specialized in debt. ORDER Defendant released on previous conditions. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. The new indictments bring to six the number of former Aequitas executives charged with defrauding investors. An official website of the United States government. 2023 Advance Local Media LLC. Email USAO-OR. One of Aequitas biggest moneymakers disappeared almost overnight. Other funds went to pay their salaries. ) or https:// means youve safely connected to the .gov website. They've got that too. President, Cathedral Finance|Senior Advisor. 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. 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. He was the British honorary consul to Portland. A lock ( Accounting giant Deloitte, stock trader T.D. The Oregonian first reported the criminal charges and guilty plea. 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 firm purchased or invested in other financial firms, many of them glorified debt collectors. Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Its been a long time coming, Kayser said. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. A locked padlock Bob Jesenik has not been criminally charged. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. Defendant waived reading of the Information. A .gov website belongs to an official government organization in the United States. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. Email USAO-OR. 1000 SW Third Ave Suite 600 Official websites use .gov 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. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . Reset here, 1999 - 2023 citywire.com. He pled guilty but has not yet been sentenced. Marketing? More Local News to Love Start today for 50% off Expires 3/6/23. All rights reserved (About Us). It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. 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. 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. A lock ( If you missed the last issue of InvestmentNews, you can access it here. Then Corinthian went bankrupt. Community Rules apply to all content you upload or otherwise submit to this site. Portland, Oregon 97204 (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. 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. As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. 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. 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? (See separate order.) Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. More Local News to Love Start today for 50% off Expires 3/6/23. Defendant sworn and examined. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. But they made good money for Aequitas and its investors. Once a high-flying Lake Oswego . (Tape #FTR-9B) (gw) (Entered: 04/19/2019) A lock ( Have a question about Government Services? 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. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. Waiver of indictment signed and accepted by the Court. Share sensitive information only on official, secure websites. Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. All three are permanently barred from the securities industry. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. Main Office: 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 Oliver was the primary fundraiser for ACF and the Aequitas Funds and a member of the management committees responsible for selecting or approving the investments made with investor . Please sign in or register to comment. A locked padlock II. 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. Have a question about Government Services? Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. 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 The Oregon firm thought it had hit the motherlode when it got into the college debt business. They've got that too. Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. ) or https:// means youve safely connected to the .gov website. 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. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. 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. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. 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. 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. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. A locked padlock The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. 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. In a separate proceeding, the SEC barred the three from the securities industry. But I think my clients will be thrilled. 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 Signed on 4/19/2019 by Judge Michael W. Mosman. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. 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. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. 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. 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. He argues he needs the money to help defray losses suffered by Aequitas investors. A .gov website belongs to an official government organization in the United States. 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. Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. 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. They also have people who have helped raise money and sell businesses so they can help with that too. This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. 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. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper.
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