Main Office: 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. The high-interest loans were terrible for students. He pled guilty but has not yet been sentenced. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. | Editor 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.. Brian has been a Senior Advisor with Cathedral Consulting since 2017. 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? 1000 SW Third Ave Suite 600 | Sign In, Verdict Corrections All three are permanently barred from the securities industry. 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. Accounting giant Deloitte, stock trader T.D. All rights reserved (About Us). A native of the United Kingdom, he served as the British honorary consul in Portland for several years. Defendant waived reading of the Information. According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. Defendant sworn and examined. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. A lock ( Its not just the amount of insurance money that went to Jesenik that concerns the receiver. ORDER Defendant released on previous conditions. PORTLAND, Ore.U.S. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. For 23 years, Brian Oliver was the classic second-in-command at Aequitas Management LLC, the earnest, low-key straight arrow to the company's colorful alpha-dog CEO Bob Jesenik. Learn more about reprints and licensing for this article. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. 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 Scott Bradford is the lead prosecutor on the case. Oliver faces a maximum sentence of 30 years in prison, a $250,000 fine or twice the gross . Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. But I think my clients will be thrilled. 1000 SW Third Ave Suite 600 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. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. II. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. 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. They also have people who have helped raise money and sell businesses so they can help with that too. By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. 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. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. Former Aequitas Owner and Executive Vice President . Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. 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. He committed suicide in an attempt to hide . Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. 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. By late 2015, Aequitas was suffering one of its periodic cash flow crises. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. Have a question about Government Services? (Tape #FTR-9B) (gw) (Entered: 04/19/2019) No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. It began to default on the interest payments owed its legion of mom and pop investors. 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. 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.. Community Rules apply to all content you upload or otherwise submit to this site. 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). Probation. PORTLAND, Ore.U.S. Counsel Present for Plaintiff: Scott Bradford, Ryan Bounds. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. Another was a utility executive who helped change Portlands business landscape. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. Main Office: 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. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. Other funds went to pay their salaries. 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. Then Corinthian went bankrupt. As Aequitas grew, its profile in the community also increased. PORTLAND, Ore.U.S. 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. PORTLAND, Ore.U.S. There was the commercial lender. | Advertising A .gov website belongs to an official government organization in the United States. Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. 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 Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. A lock ( The Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. The company opened slick new offices in New York City. (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. Much of the cash went to make the payments owed to other investors. Attorneys for the District of Oregon. Sentencing materials are due no later than 7/31/2019. In a divorce settlement filed with the court, it's. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. That has changed as the criminal case nears the indictment stage. Aequitas specialized in debt. The firm purchased or invested in other financial firms, many of them glorified debt collectors. 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. Main Office: If you need help with finances, they've got that covered. 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. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon. One of Aequitas biggest moneymakers disappeared almost overnight. But they made good money for Aequitas and its investors. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. 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. ) or https:// means youve safely connected to the .gov website. Cookie Settings/Do Not Sell My Personal Information. Aequitas did make legitimate investments. Lock Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. Ledger left the company in 2005 in a highly controversial and public way. District of Oregon Court finds guilty pleas to be knowing and voluntary. Brian received a Bachelor of Science degree from Oregon State University. 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. He was even on the board of the Arlington Club. All three are permanently barred from the securities industry. 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. Gillis was the second Aequitas chief financial officer. 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. Rice, a longtime Portland banker who eventually became regional president for Key Bank, gave up the big downtown office to join Aequitas in 2014. A locked padlock 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. Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . Gillis was the second Aequitas chief financial officer. Jesenik founded the Aequitas group of companies, and, as chief executive officer, controlled the organizations structure and had ultimate decision-making authority over company activities. 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. Email USAO-OR. 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. They agreed to plead guilty and cooperate with the government. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. 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. Please sign in or register to comment. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. 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. Gillis was the second Aequitas chief financial officer. A .gov website belongs to an official government organization in the United States. | Privacy Statement. 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.