But much of that money has already been spent. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. 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). Defendant proceeds as named. Probation. Ledger left the company in 2005 in a highly controversial and public way. The company's general counsel just quit. 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. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. Marketing? 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. The Oregon firm thought it had hit the motherlode when it got into the college debt business. The company's general counsel just quit. MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. MacRitchie, the former utility executive, was the picture of respectability. 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. Previously, Brian was an Executive VP, Business Development at Alternative Asset Management. Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. 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. 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 Now both have been sucked into the criminal fraud investigation of the collapsed firm. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. 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. Until now, Rice and MacRitchie have faced minimal legal expenses. Investors had been bilked out of hundreds of millions of dollars, the SEC said. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. They agreed to plead guilty and cooperate with the government.. | Articles 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. Defendant advised of rights. The complaint also alleges that Aequitas Capital Management Inc. and Aequitas Investment Management LLC violated Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder, and that Jesenik, Oliver, and Gillis aided and abetted the violations of Aequitas and the affiliated entities. Community Rules apply to all content you upload or otherwise submit to this site. Email USAO-OR. 04/19/2019 11 Waiver of Indictment by Brian A. Oliver (schm) (Entered: 04/19/2019) Main Office: 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. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. 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. Some money from new investors was allegedly used to pay earlier investors 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. They also have people who have helped raise money and sell businesses so they can help with that too. Community Rules apply to all content you upload or otherwise submit to this site. He is scheduled to be sentenced on Aug. 5. 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. A .gov website belongs to an official government organization in the United States. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. PORTLAND, Ore.U.S. In a divorce settlement filed with the court, it's. 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. More Local News to Love Start today for 50% off Expires 3/6/23. Former Aequitas Owner and Executive Vice President . But it appears they are far from done. By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. 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. Secure .gov websites use HTTPS If you need help with finances, they've got that covered. Attorneys for the District of Oregon. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. They also have people who have helped raise money and sell businesses so they can help with that too. Have a question about Government Services? 1000 SW Third Ave Suite 600 This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. 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. 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. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. His attorneys have submitted bills for at least 2.7 million, far more than any other defendant. 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 . 13. [More: Aequitas meltdown underscores the importance of due diligence, caution]. Share sensitive information only on official, secure websites. Waiver of indictment signed and accepted by the Court. Lock 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. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. There was the motorcycle leasing company. The Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. Email USAO-OR. They both opted not to talk. 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. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. There are also questions about whether Jesenik and other defendants spent the money appropriately. An official website of the United States government. In April, Brian Oliver, Aequitas. 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. 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. MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . 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. 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. Rice served as Aequitass executive vice president and president of wealth management. 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. 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 Aequitas collapsed in 2016 owing about $600 million to investors. PORTLAND, Ore.U.S. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. (kms) (Entered: 04/19/2019), Home 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 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? Much of the cash went to make the payments owed to other investors. 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's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. From June 2014 through February 2016, Oliver and others 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. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. Scott Bradford is the lead prosecutor on the case. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. More Local News to Love Start today for 50% off Expires 3/6/23. Have a question about Government Services? (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. | Editor In these roles, he was responsible for directing Aequitass overall financial policies and accounting functions. The Oregonian first reported the criminal charges and guilty plea. 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. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. 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. 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. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . 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. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. Other funds went to pay their salaries. Not guilty pleas and denial of forfeiture allegation entered. Sentencing materials are due no later than 7/31/2019. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. 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. 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. (chso). 1000 SW Third Ave Suite 600 A lock ( Court finds defendant capable and competent to enter plea. An official website of the United States government. Brian A. Oliver, age 51, resides in Aurora, Oregon. But this one was worse. Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. | Recent Lawyer Listings (See separate order.) 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. 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. Counsel Present for Defendant: Whitney Boise, Kendra Matthews. As Aequitas grew, its profile in the community also increased. Bob Jesenik has not been criminally charged. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. 2020 update: Aequitas investors recoup some money. He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. 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. 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. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). 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. Another was a utility executive who helped change Portlands business landscape. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. 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. Aequitas investors lost about $600 million after the collapse. Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. The company had three policies each for $5 million of coverage. All rights reserved (About Us). A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. I have really enjoyed working with Seth, Brian and the Cathedral team. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. Official websites use .gov Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. It is free to register and only takes a minute or two. He argues he needs the money to help defray losses suffered by Aequitas investors. 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. He committed suicide in an attempt to hide . 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? Cookie Settings/Do Not Sell My Personal Information. 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. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. 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. Lock There was the commercial lender. Reset here, 1999 - 2023 citywire.com. Sam Kauffman is MacRitchies attorney. All material subject to strictly enforced copyright laws. He is scheduled to be. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. 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. By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas.
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