He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. 0. Ledger left the company in 2005 in a highly controversial and public way. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. 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. 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). Accounting giant Deloitte, stock trader T.D. But I think my clients will be thrilled. 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. 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. Then Corinthian went bankrupt. 2020 update: Aequitas investors recoup some money. Defendant waived reading of the Information. Scott Bradford is the lead prosecutor on the case. Defendant proceeds as named. Portland, Oregon 97204 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. Please sign in or register to comment. Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. Other funds went to pay their salaries. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. More Local News to Love Start today for 50% off Expires 3/6/23. By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. 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! SEC charges advisor over Aequitas conflicts of interest. He was the British honorary consul to Portland. An official website of the United States government. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. Once a high-flying Lake Oswego . Sentencing materials are due no later than 7/31/2019. A lock ( 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. MacRitchie, the former utility executive, was the picture of respectability. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. They agreed to plead guilty and cooperate with the government.. He argues he needs the money to help defray losses suffered by Aequitas investors. 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. 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. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. 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. 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. 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. 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. He pled guilty but has not yet been sentenced. All Rights Reserved. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. Share sensitive information only on official, secure websites. 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. ORDER Defendant released on previous conditions. They hurt a whole lot of people.. 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. Waiver of indictment signed and accepted by the Court. Brian Oliver, Aequitas Capital's longtime No. Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. If you missed the last issue of InvestmentNews, you can access it here. 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). 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. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. Court finds defendant capable and competent to enter plea. 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. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. He declined to comment. Portland, Oregon 97204 It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. 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. [More: Aequitas meltdown underscores the importance of due diligence, caution]. Counsel Present for Plaintiff: Scott Bradford, Ryan Bounds. PORTLAND, Ore.U.S. YouTubes privacy policy is available here and YouTubes terms of service is available here. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. A .gov website belongs to an official government organization in the United States. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Bob Jesenik has not been criminally charged. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. ) or https:// means youve safely connected to the .gov website. Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. By late 2015, Aequitas was suffering one of its periodic cash flow crises. Lock 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? Community Rules apply to all content you upload or otherwise submit to this site. The company's general counsel just quit. | Sign In, Verdict Corrections Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. 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Cookie Settings/Do Not Sell My Personal Information. Have a question about Government Services? All rights reserved (About Us). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. Share sensitive information only on official, secure websites. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. 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. 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. 2023 InvestmentNews LLC. 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. The company's general counsel just quit. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. But they made good money for Aequitas and its investors. RIA Intel is part of Delinian. 2023 Advance Local Media LLC. Main Office: Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. It was the beginning of the end for the high-flying company. Portland, Oregon 97204 Attorney Billy J. Williams announced today that Robert J. Jesenik, 61, a former chief executive officer of Aequitas Management, LLC and several other Aequitas-owned entities, has been indicted along with three other former company executives for their roles in a fraud and money laundering conspiracy. In anticipation of the institution of these proceedings, Respondent has submitted an Offer . They are also prohibited from violating the SECs antifraud provisions. 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. 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. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. 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. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Have a question about Government Services? Jesenik also must pay a civil penalty of $625,000. 1000 SW Third Ave Suite 600 Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. 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. A .gov website belongs to an official government organization in the United States. A locked padlock The company's general counsel just quit. Youve missed the point, Anxiety over tax refunds on the rise, Bankrate.com study shows, Gensler steps up warnings to money managers. 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. Signed on 4/19/2019 by Judge Michael W. Mosman. Attorneys for the District of Oregon. The Oregon firm thought it had hit the motherlode when it got into the college debt business. 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 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. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. 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. He was even on the board of the Arlington Club. There are also questions about whether Jesenik and other defendants spent the money appropriately. 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. 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 receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. Marketing? The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. 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. 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. The Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. An official website of the United States government. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. All three are permanently barred from the securities industry. Not guilty pleas and denial of forfeiture allegation entered. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. (kms) (Entered: 04/19/2019), Home Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. 1000 SW Third Ave Suite 600 (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. 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. 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. 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. A lock ( 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. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. (Tape #FTR-9B) (gw) (Entered: 04/19/2019) District of Oregon Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. Rice headed Key Bank in Oregon for 12 years. Plus, three other Aequitas defendants former second-in-command Brian Oliver and N. Scott Gillis and Olaf Janke, former Aequitas chief financial officers have pleaded guilty to fraud and. 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. Brian Oliver, Aequitas Capital's longtime No. 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). Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. 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. But it appears they are far from done. On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . | Link Errors Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. 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. 1000 SW Third Ave Suite 600 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.