He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. Signed on 4/19/2019 by Judge Michael W. Mosman. The Government does not seek detention and Defendant is released on conditions. I have really enjoyed working with Seth, Brian and the Cathedral team.. 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. 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 . 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. Have a question about Government Services? But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. Probation. John Deere boasted record profits in 2021 and finally struck a deal with striking union workers. Other funds went to pay their salaries. Bob Jesenik has not been criminally charged. 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. A .gov website belongs to an official government organization in the United States. Brian received a Bachelor of Science degree from Oregon State University. Now both have been sucked into the criminal fraud investigation of the collapsed firm. All Rights Reserved. Share sensitive information only on official, secure websites. 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). 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. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. [More: Aequitas meltdown underscores the importance of due diligence, caution]. In a divorce settlement filed with the court, it's. (Tape #FTR-9B) (gw) (Entered: 04/19/2019) Portland, Oregon 97204 Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. (See separate order.) Main Office: 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. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Brian Oliver, Aequitas Capital's longtime No. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. 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. 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. Main Office: Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. 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. 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. ORDER Defendant released on previous conditions. 2023 RIA Intel, an Institutional Investor Publication. They both opted not to talk. More Local News to Love Start today for 50% off Expires 3/6/23. No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. They've got that too. Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. Share sensitive information only on official, secure websites. Attorneys for the District of Oregon. According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. (1) 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? 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. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. Ledger left the company in 2005 in a highly controversial and public way. 2020 update: Aequitas investors recoup some money. Gillis was the second Aequitas chief financial officer. They also have people who have helped raise money and sell businesses so they can help with that too. It began to default on the interest payments owed its legion of mom and pop investors. 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. Youve missed the point, Anxiety over tax refunds on the rise, Bankrate.com study shows, Gensler steps up warnings to money managers. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. 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. Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. The Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. 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. 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. 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. II. 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. Have a question about Government Services? Accounting giant Deloitte, stock trader T.D. | Advertising The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. The Oregon firm thought it had hit the motherlode when it got into the college debt business. Aequitas also had tentacles spread throughout the RIA world. 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 SECs complaint, filed on March 10, 2016, alleged that Aequitas Management and four affiliates defrauded more than 1,500 investors nationwide when that money was being used primarily to cover operating losses and to pay earlier investors in a Ponzi-like fashion, according to an April 24 SEC press release on the final judgment. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. 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. If the sentencing materials are not received on time or the Court is not advised that none will be filed, the sentencing may be rescheduled. A lock ( Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. They've got that too. If you need help with finances, they've got that covered. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. As part of the final consent judgment, the defendants are prohibited from soliciting anyone to purchase or sell a security and prohibiting them from participating in the issuance, offer, or sale of any security of an entity they control, the SECs release stated. 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. Portland, Oregon 97204 He argues he needs the money to help defray losses suffered by Aequitas investors. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. But they made good money for Aequitas and its investors. 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 (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. They also have people who have helped raise money and sell businesses so they can help with that too. 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 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. Its not just the amount of insurance money that went to Jesenik that concerns the receiver. Community Rules apply to all content you upload or otherwise submit to this site. 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. PORTLAND, Ore.U.S. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. 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 | Privacy Statement. 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. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. YouTubes privacy policy is available here and YouTubes terms of service is available here. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. Brian A. Oliver, age 51, resides in Aurora, Oregon. 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. Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. 2023 Advance Local Media LLC. MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. Aequitas collapsed in 2016 owing about $600 million to investors. He is scheduled to be. 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. 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? 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. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. The company's general counsel just quit. PORTLAND, Ore.U.S. Seven years ago, it was easy to believe in Aequitas. He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. 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. 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 also charged criminally for his conduct. Official websites use .gov Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. There was no more hiding the fact that Aequitas was broke. (Entered: 04/19/2019) 04/19/2019 11 Waiver of Indictment by Brian A. Oliver (schm) (Entered: 04/19/2019) Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. Investors had been bilked out of hundreds of millions of dollars, the SEC said. Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. Official websites use .gov 0. 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 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. Counsel Present for Plaintiff: Scott Bradford, Ryan Bounds. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. He was the British honorary consul to Portland. One of Aequitas biggest moneymakers disappeared almost overnight. | Articles | Sign In, Verdict Corrections They agreed to plead guilty and cooperate with the government.. 1000 SW Third Ave Suite 600 The new indictments bring to six the number of former Aequitas executives charged with defrauding investors. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. 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. Community Rules apply to all content you upload or otherwise submit to this site. Share sensitive information only on official, secure websites. 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. 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. B. 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.. 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. But prosecutors allege the Aequitas executives lied about the firms financial performance. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . His attorneys have submitted bills for at least 2.7 million, far more than any other defendant. 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. 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. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. But I think my clients will be thrilled. Luminaries from the downtown business establishment wanted to join the team. 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. | Recent Lawyer Listings 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 Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. Until now, Rice and MacRitchie have faced minimal legal expenses. A locked padlock Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. 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. All rights reserved (About Us). Plea Petition and Plea Agreement signed and accepted by the Court. Main Office: All rights reserved (About Us). Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. 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.. (chso). A .gov website belongs to an official government organization in the United States. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. 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Secure .gov websites use HTTPS It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. YouTubes privacy policy is available here and YouTubes terms of service is available here. 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. MacRitchie was the companys executive vice president and chief compliance officer. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. They agreed to plead guilty and cooperate with the government. 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. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Email USAO-OR. 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. Attorneys for the District of Oregon. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Brian Oliver, Aequitas Capital's longtime No. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. Prosecutors claim the Aequitas executives misled company investors about how their money was being used. Former Aequitas Owner and Executive Vice President . Marketing? The company's general counsel just quit. Email USAO-OR. A locked padlock Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility.
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