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. 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. He is scheduled to be sentenced on Aug. 5. 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. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. He declined to comment. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. Get started today before this once in a lifetime opportunity expires. 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 Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. 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. 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 ) or https:// means youve safely connected to the .gov website. Share sensitive information only on official, secure websites. In what could be the largest settlement of a securities lawsuit in Oregon history, settlements of at least $234.6 million have been secured for some 1,600 investors in a class action against third. In a separate proceeding, the SEC barred the three from the securities industry. Plea Petition and Plea Agreement signed and accepted by the Court. Investors had been bilked out of hundreds of millions of dollars, the SEC said. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. Brian A. Oliver, age 51, resides in Aurora, Oregon. One of Aequitas biggest moneymakers disappeared almost overnight. Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. Oliver was also charged criminally for his conduct. Its been a long time coming, Kayser said. Lock In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. 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 This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant 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. 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. Court finds guilty pleas to be knowing and voluntary. ORDER Defendant released on previous conditions. According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. 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. 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. Attorneys for the District of Oregon. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. President, Cathedral Finance|Senior Advisor. 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. Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. 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. Cookie Settings/Do Not Sell My Personal Information. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. But they made good money for Aequitas and its investors. Defendant advised of rights. 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. 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. They've got that too. Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. A lock ( 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, Aequitas Capital's longtime 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. 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. No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. 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. 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. | Advertising On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. | Recent Lawyer Listings YouTubes privacy policy is available here and YouTubes terms of service is available here. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. The company's general counsel just quit. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. 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. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. 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. 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. 2023 InvestmentNews LLC. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. 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. MacRitchie was the companys executive vice president and chief compliance officer. ) or https:// means youve safely connected to the .gov website. | Store Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. It is believed that since he was ousted from Aequitas, Jesenik has been. 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. Learn more about reprints and licensing for this article. Now both have been sucked into the criminal fraud investigation of the collapsed firm. Defendant sworn and examined. Share sensitive information only on official, secure websites. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. Brian received a Bachelor of Science degree from Oregon State University. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. There was the commercial lender. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. 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. 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. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. He committed suicide in an attempt to hide . Attorneys for the District of Oregon. 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. An official website of the United States government. He was the British honorary consul to Portland. 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. 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. MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. 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. 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. II. They agreed to plead guilty and cooperate with the government. 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. Lock 0. Gillis was the second Aequitas chief financial officer. Rice acknowledged in court filings that he's a suspect in the case. It began to default on the interest payments owed its legion of mom and pop investors. Main Office: 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. 2023 RIA Intel, an Institutional Investor Publication. If you need help with finances, they've got that covered. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. 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. 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 It was the beginning of the end for the high-flying company. Reset here, 1999 - 2023 citywire.com. John Deere boasted record profits in 2021 and finally struck a deal with striking union workers. SEC charges advisor over Aequitas conflicts of interest. (Entered: 04/19/2019) It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. Cookie Settings/Do Not Sell My Personal Information. Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. Another was a utility executive who helped change Portlands business landscape. Main Office: In the shadow of a turbulent future, The Bloomberg New Economy Forum brought together world leaders for face-to-face discussions on the global threats we face. Brian 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. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. 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. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. 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. (See separate order.) As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. Attorneys for the District of Oregon. An official website of the United States government. Gillis was the second Aequitas chief financial officer. All three are permanently barred from the securities industry. Ledger left the company in 2005 in a highly controversial and public way. Portland, Oregon 97204 (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) But I think my clients will be thrilled. Official websites use .gov 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. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. Previously, Brian was an Executive VP, Business Development at Alternative Asset Management.