Secure .gov websites use HTTPS Main Office: That has changed as the criminal case nears the indictment stage. Portland, Oregon 97204 Official websites use .gov They also have people who have helped raise money and sell businesses so they can help with that too. As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. 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. (chso). MacRitchie, a former ScottishPower and PacifiCorp executive, said in court filings that he too has incurred defense costs in connection with the DOJ investigation. Whether prosecutors consider MacRitchie a target or witness or some other category is unclear. 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.. Email USAO-OR. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. Gillis was the second Aequitas chief financial officer. 2 executive Brian Oliver pleaded guilty to the same charges in April. All Rights Reserved. The high-interest loans were terrible for students. Official websites use .gov 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 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. In anticipation of the institution of these proceedings, Respondent has submitted an Offer . Not guilty pleas and denial of forfeiture allegation entered. 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. Defendant proceeds as named. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. 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. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. If you missed the last issue of InvestmentNews, you can access it here. | Store Sam Kauffman is MacRitchies attorney. Attorneys for the District of Oregon. 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. 2020 update: Aequitas investors recoup some money. Cookie Settings/Do Not Sell My Personal Information. If you need help with finances, they've got that covered. | Recent Lawyer Listings ORDER Defendant released on previous conditions. But prosecutors allege the Aequitas executives lied about the firms financial performance. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. Prosecutors claim the Aequitas executives misled company investors about how their money was being used. 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. Portland, Oregon 97204 Reset here, 1999 - 2023 citywire.com. II. All rights reserved (About Us). 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. The company opened slick new offices in New York City. A locked padlock 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. Secure .gov websites use HTTPS Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. He is scheduled to be sentenced on Aug. 5. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. 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. Defendant advised of rights. Aequitas investors lost about $600 million after the collapse. (See separate order.) Main Office: But I think my clients will be thrilled. Attorneys for the District of Oregon. Other funds went to pay their salaries. 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. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. It began to default on the interest payments owed its legion of mom and pop investors. Brian Oliver President, Cathedral Finance | Senior Advisor Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. Brian Oliver, Aequitas Capital's longtime No. The company's general counsel just quit. By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. 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. 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. Share sensitive information only on official, secure websites. Lock Scott Bradford is the lead prosecutor on the case. 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 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. Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. Now both have been sucked into the criminal fraud investigation of the collapsed firm. Government summarized charges and terms of plea agreement. In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. Plea Petition and Plea Agreement signed and accepted by the Court. But this one was worse. Longtime Aequitas No. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. 1000 SW Third Ave Suite 600 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. A .gov website belongs to an official government organization in the United States. 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 Aequitas did make legitimate investments. 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. 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. 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. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Portland, Oregon 97204 Investors had been bilked out of hundreds of millions of dollars, the SEC said. The Oregon firm thought it had hit the motherlode when it got into the college debt business. PORTLAND, Ore.U.S. 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? 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. Its not just the amount of insurance money that went to Jesenik that concerns the receiver. 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. Have a question about Government Services? They also have people who have helped raise money and sell businesses so they can help with that too. 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. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. In these roles, he was responsible for directing Aequitass overall financial policies and accounting functions. Have a question about Government Services? Once a high-flying Lake Oswego . As Aequitas grew, its profile in the community also increased. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Official websites use .gov 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. They've got that too. More Local News to Love Start today for 50% off Expires 3/6/23. They agreed to plead guilty and cooperate with the government.. 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. 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. 1000 SW Third Ave Suite 600 Then Corinthian went bankrupt. 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. He is scheduled to be. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. District of Oregon Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. 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. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. The company's general counsel just quit. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. They've got that too. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. ) or https:// means youve safely connected to the .gov website. 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. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. Counsel Present for Defendant: Whitney Boise, Kendra Matthews. Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business.
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