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. 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. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. Rice served as Aequitass executive vice president and president of wealth management. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. Counsel Present for Plaintiff: Scott Bradford, Ryan Bounds. An official website of the United States government. They hurt a whole lot of people.. Its not just the amount of insurance money that went to Jesenik that concerns the receiver. Gillis was the second Aequitas chief financial officer. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. All material subject to strictly enforced copyright laws. | Advertising Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. 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. 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. Counsel Present for Defendant: Whitney Boise, Kendra Matthews. 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. The Government does not seek detention and Defendant is released on conditions. | Store They also have people who have helped raise money and sell businesses so they can help with that too. Portland, Oregon 97204 The company's general counsel just quit. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. Brian received a Bachelor of Science degree from Oregon State University. In a divorce settlement filed with the court, it's. 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. Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. 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. ) or https:// means youve safely connected to the .gov website. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. Sam Kauffman is MacRitchies attorney. MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. A lock ( The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. 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. If you need help with finances, they've got that covered. Please sign in or register to comment. They've got that too. Not guilty pleas and denial of forfeiture allegation entered. 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. 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. Community Rules apply to all content you upload or otherwise submit to this site. Brian Oliver, Aequitas Capital's longtime No. He was even on the board of the Arlington Club. Official websites use .gov But they made good money for Aequitas and its investors. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. | Link Errors Longtime Aequitas No. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. 1000 SW Third Ave Suite 600 Community Rules apply to all content you upload or otherwise submit to this site. In these roles, he was responsible for directing Aequitass overall financial policies and accounting functions. 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. 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 . Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Cookie Settings/Do Not Sell My Personal Information. ) or https:// means youve safely connected to the .gov website. 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. YouTubes privacy policy is available here and YouTubes terms of service is available here. This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. Its been a long time coming, Kayser said. Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. 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. Attorneys for the District of Oregon. Secure .gov websites use HTTPS Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. 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. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. It is believed that since he was ousted from Aequitas, Jesenik has been. Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. 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 Oregonian first reported the criminal charges and guilty plea. 2020 update: Aequitas investors recoup some money. Brian has been a Senior Advisor with Cathedral Consulting since 2017. He pled guilty but has not yet been sentenced. Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. 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. Rice headed Key Bank in Oregon for 12 years. I have really enjoyed working with Seth, Brian and the Cathedral team. 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. 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. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon. [More: Aequitas meltdown underscores the importance of due diligence, caution]. They agreed to plead guilty and cooperate with the government. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. (See separate order.) President, Cathedral Finance|Senior Advisor. Our team of expertsis available to help your business build value in a variety of ways including: assessments, strategic planning, corporate financing, M&A support, market research, growth marketingandmuch more! Government summarized charges and terms of plea agreement. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. PORTLAND, Ore.U.S. Aequitas investors lost about $600 million after the collapse. Reset here, 1999 - 2023 citywire.com. It was the beginning of the end for the high-flying company. The Oregon firm thought it had hit the motherlode when it got into the college debt business. 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. 13. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. 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 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) 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. The sentencing for former Aequitas Capital executive Brian Oliver has been moved again. Seven years ago, it was easy to believe in Aequitas. 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. He was the British honorary consul to Portland. Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. 2023 RIA Intel, an Institutional Investor Publication. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. 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.. More Local News to Love Start today for 50% off Expires 3/6/23. 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. MacRitchie, the former utility executive, was the picture of respectability. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. There was the motorcycle leasing company. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. A .gov website belongs to an official government organization in the United States. ORDER Presentence Report to be prepared by U.S. Court finds defendant capable and competent to enter plea. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. PORTLAND, Ore.U.S. Bob Jesenik has not been criminally charged. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. | Editor 18:1957 CONSPIRACY TO COMMIT MONEY LAUNDERING A locked padlock PORTLAND, Ore.U.S. Share sensitive information only on official, secure websites. It is free to register and only takes a minute or two. According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. But much of that money has already been spent. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. Youve missed the point, Anxiety over tax refunds on the rise, Bankrate.com study shows, Gensler steps up warnings to money managers. | Articles Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. He argues he needs the money to help defray losses suffered by Aequitas investors. Have a question about Government Services? Learn more about reprints and licensing for this article. Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. Marketing? They also have people who have helped raise money and sell businesses so they can help with that too. Share sensitive information only on official, secure websites. A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. Subsequent reports detailed Aequitas default on its debt, the resulting panic among investors, the secret conflicts, and the firms strange cultural mashup -- part Wall Street investment bank, part frat party, part Bible class. (chso). Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. But this one was worse. 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. Main Office: Oliver is the first former Aequitas Capital executive to be criminally charged. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). Scott Bradford is the lead prosecutor on the case. Prosecutors claim the Aequitas executives misled company investors about how their money was being used. 0. 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 A .gov website belongs to an official government organization in the United States. 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. Attorneys for the District of Oregon. A locked padlock 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. In anticipation of the institution of these proceedings, Respondent has submitted an Offer . 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. The company opened slick new offices in New York City. 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. Secure .gov websites use HTTPS They both opted not to talk. 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. ORDER granting the Government's oral motion to unseal the case. All Rights Reserved. Guilty pleas entered as to Counts 1 and 2 of the Information. 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? If you purchase a product or register for an account through one of the links on our site, we may receive compensation. 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 InvestmentNews LLC. 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. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. 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. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. Defendant waived reading of the Information. 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. 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. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty.