Sentencing materials are due no later than 7/31/2019. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. Luminaries from the downtown business establishment wanted to join the team. It began to default on the interest payments owed its legion of mom and pop investors. Main Office: Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. Accounting giant Deloitte, stock trader T.D. 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. Have a question about Government Services? All Rights Reserved. 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. According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. All three are permanently barred from the securities industry. Marketing? The company's general counsel just quit. 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 Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. Please sign in or register to comment. Then Corinthian went bankrupt. 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. 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. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. Gillis was the second Aequitas chief financial officer. 2023 RIA Intel, an Institutional Investor Publication. The Oregonian first reported the criminal charges and guilty plea. 1000 SW Third Ave Suite 600 No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. 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. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. It is believed that since he was ousted from Aequitas, Jesenik has been. Brian Oliver, Aequitas Capital's longtime No. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. 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. Official websites use .gov B. 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. They agreed to plead guilty and cooperate with the government. SEC charges advisor over Aequitas conflicts of interest. The company opened slick new offices in New York City. Counsel Present for Defendant: Whitney Boise, Kendra Matthews. The company's general counsel just quit. 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. There are also questions about whether Jesenik and other defendants spent the money appropriately. 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. 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 now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. A locked padlock Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. Secure .gov websites use HTTPS Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. MacRitchie was the companys executive vice president and chief compliance officer. Main Office: 2023 Advance Local Media LLC. He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. Signed on 4/19/2019 by Judge Michael W. Mosman. Secure .gov websites use HTTPS ) or https:// means youve safely connected to the .gov website. 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. But this one was worse. There was the commercial lender. A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. 18:1957 CONSPIRACY TO COMMIT MONEY LAUNDERING Gillis was the second Aequitas chief financial officer. 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 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. 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. 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. Brian received a Bachelor of Science degree from Oregon State University. Defendant advised of rights. The Government does not seek detention and Defendant is released on conditions. 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. ORDER granting the Government's oral motion to unseal the case. I have really enjoyed working with Seth, Brian and the Cathedral team.. 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. He pled guilty but has not yet been sentenced. A locked padlock 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 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 . 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. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. A lock ( They also have people who have helped raise money and sell businesses so they can help with that too. They are also prohibited from violating the SECs antifraud provisions. 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. This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Rice acknowledged in court filings that he's a suspect in the case. 2023 InvestmentNews LLC. | Editor By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. A .gov website belongs to an official government organization in the United States. PORTLAND, Ore.U.S. ) or https:// means youve safely connected to the .gov website. The company had three policies each for $5 million of coverage. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. Rice headed Key Bank in Oregon for 12 years. 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. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. (Tape #FTR-9B) (gw) (Entered: 04/19/2019)