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. Aequitas also had tentacles spread throughout the RIA world. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. 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. ) or https:// means youve safely connected to the .gov website. 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. 2023 Advance Local Media LLC. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. It began to default on the interest payments owed its legion of mom and pop investors. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. Community Rules apply to all content you upload or otherwise submit to this site. | Link Errors Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. But they made good money for Aequitas and its investors. The Oregon firm thought it had hit the motherlode when it got into the college debt business. The company's general counsel just quit. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. A .gov website belongs to an official government organization in the United States. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon. Its been a long time coming, Kayser said. Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. Another was a utility executive who helped change Portlands business landscape. 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? As Aequitas grew, its profile in the community also increased. 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. Aequitas investors lost about $600 million after the collapse. That has changed as the criminal case nears the indictment stage. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. I have really enjoyed working with Seth, Brian and the Cathedral team. 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. 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. Jesenik also must pay a civil penalty of $625,000. But it appears they are far from done. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. If you need help with finances, they've got that covered. 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 Defendant advised of rights. 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. They hurt a whole lot of people.. Have a question about Government Services? 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. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. Seven years ago, it was easy to believe in Aequitas. 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. A locked padlock Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. Attorneys for the District of Oregon. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. Now both have been sucked into the criminal fraud investigation of the collapsed firm. Have a question about Government Services? In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. There are also questions about whether Jesenik and other defendants spent the money appropriately. 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 . 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. 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.. (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. YouTubes privacy policy is available here and YouTubes terms of service is available here. Defendant waived reading of the Information. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. Secure .gov websites use HTTPS Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. 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? 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. A lock ( According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. 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. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. Its not just the amount of insurance money that went to Jesenik that concerns the receiver. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. 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. Gillis was the second Aequitas chief financial officer. Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. Official websites use .gov The new indictments bring to six the number of former Aequitas executives charged with defrauding investors. Court finds defendant capable and competent to enter plea. Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. Waiver of indictment signed and accepted by the Court. In April, Brian Oliver, Aequitas. They also have people who have helped raise money and sell businesses so they can help with that too. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. Share sensitive information only on official, secure websites. 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. 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. 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. 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. 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. 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. 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. 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! Share sensitive information only on official, secure websites. 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. An official website of the United States government. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) 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. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. 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. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. ORDER Defendant released on previous conditions. Portland, Oregon 97204 Oliver was also charged criminally for his conduct. 1000 SW Third Ave Suite 600 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.
Is Rebecca Sarker Married,
Meberry Tablet Warranty,
Man Found Dead In Rutherglen,
Mats Zuccarello Wedding,
Articles B