According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. 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. The company's general counsel just quit. A .gov website belongs to an official government organization in the United States. A .gov website belongs to an official government organization in the United States. Reset here, 1999 - 2023 citywire.com. If you need help with finances, they've got that covered. Some money from new investors was allegedly used to pay earlier investors 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? The sentencing for former Aequitas Capital executive Brian Oliver has been moved again. 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. A lock ( (Entered: 04/19/2019) Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. Aequitas collapsed in 2016 owing about $600 million to investors. 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! 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. 1000 SW Third Ave Suite 600
Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. Share sensitive information only on official, secure websites. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. Oliver was also charged criminally for his conduct. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. 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. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. Cookie Settings/Do Not Sell My Personal Information. 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. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. 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. 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. 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 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. Community Rules apply to all content you upload or otherwise submit to this site. A locked padlock Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. PORTLAND, Ore.U.S. 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. Another was a utility executive who helped change Portlands business landscape. But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. 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? Learn more about reprints and licensing for this article. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. 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.. Government summarized charges and terms of plea agreement. Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. One of Aequitas biggest moneymakers disappeared almost overnight. 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. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. 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. 1000 SW Third Ave Suite 600
04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. (1) An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. Defendant proceeds as named. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Cookie Settings/Do Not Sell My Personal Information. Attorneys for the District of Oregon. The high-interest loans were terrible for students. Other funds went to pay their salaries. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. | Advertising | Sign In, Verdict Corrections Community Rules apply to all content you upload or otherwise submit to this site. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. 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. A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. Rice, a longtime Portland banker who eventually became regional president for Key Bank, gave up the big downtown office to join Aequitas in 2014. Probation. 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. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. That has changed as the criminal case nears the indictment stage. The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. Aequitas also had tentacles spread throughout the RIA world. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. I have really enjoyed working with Seth, Brian and the Cathedral team.. He declined to comment. 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. (kms) (Entered: 04/19/2019), Home Longtime Aequitas No. Brian received a Bachelor of Science degree from Oregon State University. 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. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. Lock District of Oregon
There was the commercial lender. Brian has been a Senior Advisor with Cathedral Consulting since 2017. A Salem, Oregon man pleaded guilty today for using Twitter to threaten violence against employees of Robinhood Markets, Inc., an online financial services company based in Menlo Park, California. A lock ( Defendant advised of rights. II. Once a high-flying Lake Oswego . 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) 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. Marketing? Get started today before this once in a lifetime opportunity expires. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. Much of the cash went to make the payments owed to other investors. Previously, Brian was an Executive VP, Business Development at Alternative Asset Management. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. Gillis was the second Aequitas chief financial officer. The company's general counsel just quit. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. 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. Official websites use .gov PORTLAND, Ore.U.S. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. The Government does not seek detention and Defendant is released on conditions. Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. Marketing? 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. 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. Brian Oliver, Aequitas Capital's longtime No. PORTLAND, Ore.U.S. 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). 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. Please sign in or register to comment. [More: Aequitas meltdown underscores the importance of due diligence, caution]. 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
Collectively, the defendants also failed to disclose other critical facts about the company, including its near-constant liquidity and cash-flow crises, the use of investor money to repay other investors and to defray operating expenses, and the lack of collateral to secure funds. (Tape #FTR-9B) (gw) (Entered: 04/19/2019) Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. His attorneys have submitted bills for at least 2.7 million, far more than any other defendant. | Link Errors They are also prohibited from violating the SECs antifraud provisions. But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. Counsel Present for Defendant: Whitney Boise, Kendra Matthews. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. Official websites use .gov Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . A locked padlock A .gov website belongs to an official government organization in the United States. But much of that money has already been spent. It is believed that since he was ousted from Aequitas, Jesenik has been. Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023. But I think my clients will be thrilled. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. It was the beginning of the end for the high-flying company. 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. It began to default on the interest payments owed its legion of mom and pop investors. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Jesenik also must pay a civil penalty of $625,000. President, Cathedral Finance|Senior Advisor. They agreed to plead guilty and cooperate with the government.. (chso). Main Office:
All three are permanently barred from the securities industry. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. It is free to register and only takes a minute or two. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. 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. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. 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). They've got that too. 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. 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. In a divorce settlement filed with the court, it's. Brian Oliver, Aequitas Capital's longtime No. 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
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. MacRitchie, the former utility executive, was the picture of respectability. Oliver is the first former Aequitas Capital executive to be criminally charged. All three are permanently barred from the securities industry. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. All material subject to strictly enforced copyright laws. Portland, Oregon 97204
Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. Gillis was the second Aequitas chief financial officer. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. Investors had been bilked out of hundreds of millions of dollars, the SEC said. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Aequitas specialized in debt. 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. 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 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. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. Scott Bradford is the lead prosecutor on the case. 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. 2023 Advance Local Media LLC. 2023 Advance Local Media LLC. ) or https:// means youve safely connected to the .gov website. Share sensitive information only on official, secure websites. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. Seven years ago, it was easy to believe in Aequitas. More Local News to Love Start today for 50% off Expires 3/6/23. I have really enjoyed working with Seth, Brian and the Cathedral team. | Privacy Statement. This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. 1000 SW Third Ave Suite 600
YouTubes privacy policy is available here and YouTubes terms of service is available here. Sentencing materials are due no later than 7/31/2019. 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.