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 federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. 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. Share sensitive information only on official, secure websites. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. 13. 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. It began to default on the interest payments owed its legion of mom and pop investors. 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. ORDER Defendant released on previous conditions. That has changed as the criminal case nears the indictment stage. Prosecutors claim the Aequitas executives misled company investors about how their money was being used. The high-interest loans were terrible for students. Marketing? RIA Intel is part of Delinian. Aequitas also had tentacles spread throughout the RIA world. They agreed to plead guilty and cooperate with the government.. 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.. 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. A locked padlock 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. Reset here, 1999 - 2023 citywire.com. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. Bob Jesenik has not been criminally charged. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. Aequitas specialized in debt. 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. In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. Some money from new investors was allegedly used to pay earlier investors But it appears they are far from done. ) or https:// means youve safely connected to the .gov website. 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. A locked padlock Aequitas investors lost about $600 million after the collapse. Much of the cash went to make the payments owed to other investors. Email USAO-OR. Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. 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. Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. [More: Aequitas meltdown underscores the importance of due diligence, caution]. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. MacRitchie was the companys executive vice president and chief compliance officer. Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. 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. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. 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. | Store 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. He was even on the board of the Arlington Club. Waiver of indictment signed and accepted by the Court. 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. 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. | Link Errors II. In addition, it said Gillis agreed to be permanently suspended from appearing and practicing before the SEC as an accountant and cannot work as an auditor for pubic companies. Official websites use .gov Learn more about reprints and licensing for this article.
Another was a utility executive who helped change Portlands business landscape. 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. One of Aequitas biggest moneymakers disappeared almost overnight. The company's general counsel just quit. A .gov website belongs to an official government organization in the United States. 2023 RIA Intel, an Institutional Investor Publication. Portland, Oregon 97204
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YouTubes privacy policy is available here and YouTubes terms of service is available here. 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. Share sensitive information only on official, secure websites. Longtime Aequitas No. 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. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. Oliver is the first former Aequitas Capital executive to be criminally charged. I have really enjoyed working with Seth, Brian and the Cathedral team. (kms) (Entered: 04/19/2019), Home The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. 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. The Oregon firm thought it had hit the motherlode when it got into the college debt business. 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. They hurt a whole lot of people.. They both opted not to talk. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. Defendant sworn and examined. 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. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. A .gov website belongs to an official government organization in the United States. 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. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon. They also have people who have helped raise money and sell businesses so they can help with that too. A .gov website belongs to an official government organization in the United States. Have a question about Government Services? If you purchase a product or register for an account through one of the links on our site, we may receive compensation. ORDER Presentence Report to be prepared by U.S. Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. Secure .gov websites use HTTPS Sam Kauffman is MacRitchies attorney. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. Attorneys for the District of Oregon. (Entered: 04/19/2019) Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. Ledger left the company in 2005 in a highly controversial and public way. Gillis was the second Aequitas chief financial officer. 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. 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. Cookie Settings/Do Not Sell My Personal Information. 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. An official website of the United States government. Probation. It is free to register and only takes a minute or two. On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . 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. Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. YouTubes privacy policy is available here and YouTubes terms of service is available here. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. 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. Gillis was the second Aequitas chief financial officer. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Defendant waived reading of the Information. 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. Until now, Rice and MacRitchie have faced minimal legal expenses. 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. | Privacy Statement. (See separate order.) Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. John Deere boasted record profits in 2021 and finally struck a deal with striking union workers. Brian Oliver, Aequitas Capital's longtime No. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). If you need help with finances, they've got that covered. He is scheduled to be. 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
By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. But much of that money has already been spent. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. 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. He declined to comment. Email USAO-OR. Rice headed Key Bank in Oregon for 12 years. As Aequitas grew, its profile in the community also increased. Seven years ago, it was easy to believe in Aequitas. Attorney Billy J. Williams announced today that Robert J. Jesenik, 61, a former chief executive officer of Aequitas Management, LLC and several other Aequitas-owned entities, has been indicted along with three other former company executives for their roles in a fraud and money laundering conspiracy. All Rights Reserved. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. A lock ( 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. 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. 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.. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. Have a question about Government Services? Guilty pleas entered as to Counts 1 and 2 of the Information. 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. MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. 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. 0. Official websites use .gov Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. They are also prohibited from violating the SECs antifraud provisions. The firm purchased or invested in other financial firms, many of them glorified debt collectors. President, Cathedral Finance|Senior Advisor. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. He argues he needs the money to help defray losses suffered by Aequitas 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. 1000 SW Third Ave Suite 600
Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. The company's general counsel just quit. 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. The Government does not seek detention and Defendant is released on conditions.
2023 Advance Local Media 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. 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? He pled guilty but has not yet been sentenced. | Articles 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. 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 . Aequitas collapsed in 2016 owing about $600 million to investors. 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. 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. 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. He committed suicide in an attempt to hide . But prosecutors allege the Aequitas executives lied about the firms financial performance. 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. Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. By late 2015, Aequitas was suffering one of its periodic cash flow crises. He was the British honorary consul to Portland. 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 now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. Portland, Oregon 97204
Have a question about Government Services? Jesenik also must pay a civil penalty of $625,000. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. In these roles, he was responsible for directing Aequitass overall financial policies and accounting functions. 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 They've got that too. Defendant advised of rights. Main Office:
There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges.