The company's general counsel just quit. 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. The Oregonian first reported the criminal charges and guilty plea. They also have people who have helped raise money and sell businesses so they can help with that too. He was even on the board of the Arlington Club. More Local News to Love Start today for 50% off Expires 3/6/23. 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 . 0. Email USAO-OR. 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. All three are permanently barred from the securities industry. They agreed to plead guilty and cooperate with the government.. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. 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. 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. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. 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. Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. 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? Share sensitive information only on official, secure websites. Secure .gov websites use HTTPS Have a question about Government Services? Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. (See separate order.) 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). Portland, Oregon 97204 Ledger left the company in 2005 in a highly controversial and public way. Gillis was the second Aequitas chief financial officer. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. 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. He declined to comment. A lock ( More Local News to Love Start today for 50% off Expires 3/6/23. 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. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. 18:1957 CONSPIRACY TO COMMIT MONEY LAUNDERING ORDER Presentence Report to be prepared by U.S. ) or https:// means youve safely connected to the .gov website. Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. 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? | Editor An official website of the United States government. 1000 SW Third Ave Suite 600 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. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. There was the motorcycle leasing company. The company had three policies each for $5 million of coverage. Attorneys for the District of Oregon. 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. Longtime Aequitas No. A locked padlock Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). Attorneys for the District of Oregon. 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. 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. 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. Brian Rice and Andrew MacRitchie left their corporate posts for jobs at Aequitas Capital. Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. Share sensitive information only on official, secure websites. | Store Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Portland, Oregon 97204 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. All rights reserved (About Us). Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. (chso). Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. 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). Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. 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. They both opted not to talk. The firm purchased or invested in other financial firms, many of them glorified debt collectors. PORTLAND, Ore.U.S. 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. Sentencing materials are due no later than 7/31/2019. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. Attorneys for the District of Oregon. A .gov website belongs to an official government organization in the United States. He is scheduled to be. Scott Bradford is the lead prosecutor on the case. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . Rice served as Aequitass executive vice president and president of wealth management. Have a question about Government Services? 04/19/2019 11 Waiver of Indictment by Brian A. Oliver (schm) (Entered: 04/19/2019) 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. Lock Rice, a longtime Portland banker who eventually became regional president for Key Bank, gave up the big downtown office to join Aequitas in 2014. 2020 update: Aequitas investors recoup some money. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. They've got that too. A .gov website belongs to an official government organization in the United States. Get started today before this once in a lifetime opportunity expires. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. 2 executive Brian Oliver pleaded guilty to the same charges in April. This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Much of the cash went to make the payments owed to other investors. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. ) or https:// means youve safely connected to the .gov website. Oliver is the first former Aequitas Capital executive to be criminally charged. By late 2015, Aequitas was suffering one of its periodic cash flow crises. The sentencing for former Aequitas Capital executive Brian Oliver has been moved again. But prosecutors allege the Aequitas executives lied about the firms financial performance. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. 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. 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. Email USAO-OR. Defendant waived reading of the Information. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. PORTLAND, Ore.U.S. 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. But much of that money has already been spent. In anticipation of the institution of these proceedings, Respondent has submitted an Offer . This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. 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.. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. John Deere boasted record profits in 2021 and finally struck a deal with striking union workers. | Privacy Statement. 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. PORTLAND, Ore.U.S. Brian provides Cathedral particular expertise in leading Merger & Acquisition transactions and arranging Corporate Finance solutions for its clients, after having been involved in extensive transactions of all sizes throughout his career. 13. Prosecutors claim the Aequitas executives misled company investors about how their money was being used. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. Its not just the amount of insurance money that went to Jesenik that concerns the receiver. 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. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. There was the commercial lender. Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) YouTubes privacy policy is available here and YouTubes terms of service is available here. I have really enjoyed working with Seth, Brian and the Cathedral team. Bob Jesenik has not been criminally charged. A lock ( Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. 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. 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 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. Reset here, 1999 - 2023 citywire.com. In April, Brian Oliver, Aequitas. 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. Official websites use .gov 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. Court finds defendant capable and competent to enter plea. Marketing? 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 A locked padlock Aequitas investors filed a $350 million class-action lawsuit in April 2016, less than a month after the SEC charged Aequitas Management LLC and four affiliates, as well as three executivesCEO Robert Jesenik, executive vice president Brian Oliver, and CFO and chief operating officer N. Scott Gilliswith hiding the deteriorating financial 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. The Government does not seek detention and Defendant is released on conditions. Aequitas collapsed in 2016 owing about $600 million to investors. Secure .gov websites use HTTPS 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 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. 2023 InvestmentNews LLC. All three are permanently barred from the securities industry. There was no more hiding the fact that Aequitas was broke. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. Rice acknowledged in court filings that he's a suspect in the case. 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. Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. The Oregon firm thought it had hit the motherlode when it got into the college debt business. 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 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. Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. As Aequitas grew, its profile in the community also increased.