Gillis was the second Aequitas chief financial officer. Defendant advised of rights. (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. Portland, Oregon 97204 Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. Defendant sworn and examined. As Aequitas grew, its profile in the community also increased. Sentencing materials are due no later than 7/31/2019. (1) 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.. There was the commercial lender. They agreed to plead guilty and cooperate with the government.. ) or https:// means youve safely connected to the .gov website. MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. 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. They both opted not to talk. Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. 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). An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. They also have people who have helped raise money and sell businesses so they can help with that too. Please sign in or register to comment. 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. Community Rules apply to all content you upload or otherwise submit to this site. He was even on the board of the Arlington Club. 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. In a divorce settlement filed with the court, it's. But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. Brian A. Oliver, age 51, resides in Aurora, Oregon. Attorneys for the District of Oregon. But it appears they are far from done. Rice acknowledged in court filings that he's a suspect in the case. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. He declined to comment. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. 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. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. 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. Once a high-flying Lake Oswego . 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 On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. 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. MacRitchie, the former utility executive, was the picture of respectability. 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. Ledger left the company in 2005 in a highly controversial and public way. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. A locked padlock Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. The Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. 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. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. All material subject to strictly enforced copyright laws. Lock Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. 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 Share sensitive information only on official, secure websites. Aequitas also had tentacles spread throughout the RIA world. Brian Rice and Andrew MacRitchie left their corporate posts for jobs at Aequitas Capital. Its been a long time coming, Kayser said. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. The sentencing for former Aequitas Capital executive Brian Oliver has been moved again. 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. 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. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. 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. 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. District of Oregon As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Marketing? The company's general counsel just quit. One of Aequitas biggest moneymakers disappeared almost overnight. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Counsel Present for Defendant: Whitney Boise, Kendra Matthews. It is believed that since he was ousted from Aequitas, Jesenik has been. They've got that too. 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. Signed on 4/19/2019 by Judge Michael W. Mosman. 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. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. 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. 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. If you need help with finances, they've got that covered. 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. 2 executive Brian Oliver pleaded guilty to the same charges in April. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. B. 13. 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. Brian Oliver, Aequitas Capital's longtime No. In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. He established and maintained the companys accounting principles, practices, procedures and initiatives, prepared financial reports and presented findings and recommendations to the executive teams, and oversaw all financial functions. | Editor | Recent Lawyer Listings Aequitas collapsed in 2016 owing about $600 million to investors. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. Probation. 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. Now both have been sucked into the criminal fraud investigation of the collapsed firm. Secure .gov websites use HTTPS Official websites use .gov Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. 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.. Former Aequitas Owner and Executive Vice President . Secure .gov websites use HTTPS But much of that money has already been spent. Scott Bradford is the lead prosecutor on the case. 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. 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. 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. The firm purchased or invested in other financial firms, many of them glorified debt collectors. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. An official website of the United States government. 2023 RIA Intel, an Institutional Investor Publication. 0. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. | Link Errors 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. I have really enjoyed working with Seth, Brian and the Cathedral team. 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 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 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. They hurt a whole lot of people.. Learn more about reprints and licensing for this article. 1000 SW Third Ave Suite 600 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. YouTubes privacy policy is available here and YouTubes terms of service is available here. Youve missed the point, Anxiety over tax refunds on the rise, Bankrate.com study shows, Gensler steps up warnings to money managers. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. A locked padlock | Advertising According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. 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. Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. The company had three policies each for $5 million of coverage. President, Cathedral Finance|Senior Advisor. The SEC alleges that CEO Robert J. Jesenik and executive vice president Brian A. Oliver were well aware of the firm's dire financial status but continued to solicit hundreds of millions of dollars in investments to stave off the firm's complete collapse. Brian has been a Senior Advisor with Cathedral Consulting since 2017. 04/19/2019 11 Waiver of Indictment by Brian A. Oliver (schm) (Entered: 04/19/2019) 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. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. Official websites use .gov Court finds guilty pleas to be knowing and voluntary. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. Attorneys for the District of Oregon. There was no more hiding the fact that Aequitas was broke. More Local News to Love Start today for 50% off Expires 3/6/23. 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. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. There was the motorcycle leasing company. 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.) | Sign In, Verdict Corrections A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. RIA Intel is part of Delinian. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. 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. Brian received a Bachelor of Science degree from Oregon State University. 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! 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. 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. 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. Until now, Rice and MacRitchie have faced minimal legal expenses. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. 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. On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . 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 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. Jesenik also must pay a civil penalty of $625,000. | Privacy Statement. (Entered: 04/19/2019) Portland, Oregon 97204 Sentencing is set for 8/5/2019 at 9:00AM in Portland before Judge Michael W. Mosman. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. 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. The new indictments bring to six the number of former Aequitas executives charged with defrauding investors. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. Mitsubishi Signs $1.9b Commuter Rail Deal With Manila: Nikkei, AllianceBernstein Wins China Approval to Set Up Mutual Fund Unit, Sorry, Fed, Most US Mortgage Rates Were Locked in During Pandemic Lows, Fed Says MoreRate Hikes Are Needed to Curb Inflation, US Service Sector Expands More Than Forecast Suggesting Hiring Success, VW Will Build a $2 Billion Electric Truck and SUV Plant in South Carolina, Saudi Wealth Fund in Talks to Buy Rocco Forte Hotels Stake, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, SoftBanks Son to Join Modi at Oyo Founders Wedding Gala, US-Sanctioned Huawei Makes a Show of Force at Mobile Conference, Hong Kong Court Convicts Activists Behind Tiananmen Vigil, Bidens About-Face on DC Crime Bill Shows Democrats on Defensive, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, NYC TikTok Dating Diary Chronicles Love in the Time of Inflation, Tom Sizemore, 'Saving Private Ryan' actor, dies at 61, AP Says, The Exhibit Reality TV Show PittingArtist Against ArtistIs No Masterpiece, Video Roundup: Opinions Must-See Footage of the Week, How Democrats Got Away From Third Way Politics, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Biden Gives Medal of Honor to Trailblazing Special Forces Member, Panic Over Metals for EVs Goes All the Way to Automakers C-Suites, Rivian Tells Staff EV Output May Be 24% More Than Forecast, What Do You Want to See in a Covid Memorial? Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. He was the British honorary consul to Portland. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. 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. (chso). This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. 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 company's general counsel just quit.
