He was the British honorary consul to Portland. ORDER Defendant released on previous conditions. Lock 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? (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. Jesenik also must pay a civil penalty of $625,000. The company's general counsel just quit. ) or https:// means youve safely connected to the .gov website. 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.. Defendant proceeds as named. PORTLAND, Ore.U.S. Investment adviser: Aequitas lied to investors | The Seattle Times A .gov website belongs to an official government organization in the United States. According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. More Local News to Love Start today for 50% off Expires 3/6/23. Gillis was the second Aequitas chief financial officer. Attorneys for the District of Oregon. It is believed that since he was ousted from Aequitas, Jesenik has been working for a company founded by his son: KCR Advisors LLC, based in Viero Beach, Fla. An earlier indictment against Gillis will be dismissed. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. 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. 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. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. As Aequitas grew, its profile in the community also increased. He was even on the board of the Arlington Club. Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. 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 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). Brian Oliver - Senior Advisor & President, Cathedral Finance They also have people who have helped raise money and sell businesses so they can help with that too. Marketing? 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? Sentencing is set for 8/5/2019 at 9:00AM in Portland before Judge Michael W. Mosman. 0. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Until now, Rice and MacRitchie have faced minimal legal expenses. The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. SEC bars Aequitas execs after $540m judgement against Oregon firm This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. Some money from new investors was allegedly used to pay earlier investors Defendant sworn and examined. 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.. But prosecutors allege the Aequitas executives lied about the firms financial performance. 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. 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 Oregon firm thought it had hit the motherlode when it got into the college debt business. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. 2023 InvestmentNews LLC. Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. In April, Brian Oliver, Aequitas. Bob Jesenik, three other former Aequitas executives - Oregonlive Redmond adviser caught in Oregon firm's $600M financial collapse He is scheduled to be sentenced on Aug. 5. 2020 update: Aequitas investors recoup some money. Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. Aequitas Management, LLC, et al. (Release No. LR-23485; March 11, 2016) This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. Now both have been sucked into the criminal fraud investigation of the collapsed firm. A lock ( PORTLAND, Ore.U.S. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. 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. 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. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. The Government does not seek detention and Defendant is released on conditions. 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. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. B. Other funds went to pay their salaries. 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. 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. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. 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. Aequitas also had tentacles spread throughout the RIA world. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". All Rights Reserved. The company opened slick new offices in New York City. 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 . Its not just the amount of insurance money that went to Jesenik that concerns the receiver. 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. Luminaries from the downtown business establishment wanted to join the team. 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. Then Corinthian went bankrupt. ) 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. 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. Attorneys in Aequitas Capital fraud case spar over Oregon regulator who 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. Community Rules apply to all content you upload or otherwise submit to this site. Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. ) or https:// means youve safely connected to the .gov website. There was no more hiding the fact that Aequitas was broke. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. (See separate order.) 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. SEC v. Aequitas Management, LLC; Aequitas Holdings, LLC; Aequitas Secure .gov websites use HTTPS Aequitas did make legitimate investments. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. Deloitte Is Finally Finished with That Whole Aequitas Investors Lawsuit 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. Oliver is the first former Aequitas Capital executive to be criminally charged. By late 2015, Aequitas was suffering one of its periodic cash flow crises. Get started today before this once in a lifetime opportunity expires. | Store Lock Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. Janke becomes second Aequitas executive to plead guilty; could get Scott Bradford is the lead prosecutor on the case. 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. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. 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 Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. 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. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. 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. Have a question about Government Services? An official website of the United States government. 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. Owler Reports - KCC: Aequitas Capital No. 2 Brian Oliver pleads guilty 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. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. 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.