They've got that too. Portland, Oregon 97204 Signed on 4/19/2019 by Judge Michael W. Mosman. A locked padlock 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. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant 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. Other funds went to pay their salaries. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. Defendant waived reading of the Information. As part of their plea agreements, they have both agreed to pay restitution in full to their victims as determined and ordered by the court. 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. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. 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. 0. 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.. He was even on the board of the Arlington Club. Cookie Settings/Do Not Sell My Personal Information. [More: Aequitas meltdown underscores the importance of due diligence, caution]. 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 and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. 2023 InvestmentNews LLC. 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). 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. 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. B. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. All rights reserved (About Us). 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). But this one was worse. A lock ( Aequitas collapsed in 2016 owing about $600 million to investors. | Sign In, Verdict Corrections Lock In anticipation of the institution of these proceedings, Respondent has submitted an Offer . ) or https:// means youve safely connected to the .gov website. Counsel Present for Plaintiff: Scott Bradford, Ryan Bounds. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Rice served as Aequitass executive vice president and president of wealth management. Share sensitive information only on official, secure websites. Community Rules apply to all content you upload or otherwise submit to this 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. Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. They also have people who have helped raise money and sell businesses so they can help with that too. 2020 update: Aequitas investors recoup some money. There was the motorcycle leasing company. 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. 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. Official websites use .gov Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. Sentencing materials are due no later than 7/31/2019. 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. 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. 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 . Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. Main Office: 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. Accounting giant Deloitte, stock trader T.D. 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. 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. Oliver was also charged criminally for his conduct. 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 MacRitchie, the former utility executive, was the picture of respectability. They agreed to plead guilty and cooperate with the government.. Marketing? YouTubes privacy policy is available here and YouTubes terms of service is available here. They also have people who have helped raise money and sell businesses so they can help with that too. 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. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. Rice headed Key Bank in Oregon for 12 years. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. 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. 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? In the shadow of a turbulent future, The Bloomberg New Economy Forum brought together world leaders for face-to-face discussions on the global threats we face. Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. The company's general counsel just quit. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. Court finds guilty pleas to be knowing and voluntary. Oliver is the first former Aequitas Capital executive to be criminally charged. Recently, MacRitchie has incurred defense costs in connection with the DOJ investigation and expects to continue to incur Defense Costs in that matter, his lawyer said in a court filing. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. It is free to register and only takes a minute or two. Former Aequitas Owner and Executive Vice President . Aequitas investors lost about $600 million after the collapse. This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. Once a high-flying Lake Oswego . Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. 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. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. The Oregonian first reported the criminal charges and guilty plea. 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The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. President, Cathedral Finance|Senior Advisor. But I think my clients will be thrilled. They've got that too. Secure .gov websites use HTTPS They agreed to plead guilty and cooperate with the government. No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. 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 Luminaries from the downtown business establishment wanted to join the team. 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. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. Attorneys for the District of Oregon. His attorneys have submitted bills for at least 2.7 million, far more than any other defendant. The company's general counsel just quit. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Official websites use .gov 04/19/2019 11 Waiver of Indictment by Brian A. Oliver (schm) (Entered: 04/19/2019) 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. They are also prohibited from violating the SECs antifraud provisions. Cookie Settings/Do Not Sell My Personal Information. 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. Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. Defendant advised of rights. District of Oregon They hurt a whole lot of people.. 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. Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. 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. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. ORDER Presentence Report to be prepared by U.S. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. 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. Portland, Oregon 97204 The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. Plea Petition and Plea Agreement signed and accepted by the Court. 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. The company's general counsel just quit. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. 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. An official website of the United States government. In a divorce settlement filed with the court, it's. The new indictments bring to six the number of former Aequitas executives charged with defrauding investors. 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. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). | Store On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. Learn more about reprints and licensing for this article. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. Its not just the amount of insurance money that went to Jesenik that concerns the receiver. 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 Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. 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. Scott Gillis, 66, from the securities industry for their roles in a scheme that bilked hundreds of millions from investors. Not guilty pleas and denial of forfeiture allegation entered. Brian received a Bachelor of Science degree from Oregon State University. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. 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. 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..