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. 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. Brian Oliver, Aequitas Capital's longtime No. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. 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. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. The company's general counsel just quit. 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? Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. In January 2014, shortly before joining Aequitas, he was named to the Portland board of directors of the Federal Reserve Bank of San Francisco. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). He argues he needs the money to help defray losses suffered by Aequitas investors. In these roles, he was responsible for directing Aequitass overall financial policies and accounting functions. Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. But much of that money has already been spent. | Articles Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. In a divorce settlement filed with the court, it's. MacRitchie was the companys executive vice president and chief compliance officer. An official website of the United States government. Brian received a Bachelor of Science degree from Oregon State University. 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. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. MacRitchie, the former utility executive, was the picture of respectability. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. 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.. Former Aequitas Owner and Executive Vice President . Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. brian oliver, aequitas brian oliver, aequitas Home Realizacje i porady Bez kategorii brian oliver, aequitas A lock ( 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. Rice acknowledged in court filings that he's a suspect in the case. Plea Petition and Plea Agreement signed and accepted by the Court. Court finds defendant capable and competent to enter plea. Aequitas also had tentacles spread throughout the RIA world. With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. 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. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. More Local News to Love Start today for 50% off Expires 3/6/23. Waiver of indictment signed and accepted by the Court. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. Main Office: As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. 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Learn more about reprints and licensing for this article. 2023 RIA Intel, an Institutional Investor Publication. Rice served as Aequitass executive vice president and president of wealth management. In a separate proceeding, the SEC barred the three from the securities industry. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. 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. Gillis was the second Aequitas chief financial officer. He was the British honorary consul to Portland. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. Ledger left the company in 2005 in a highly controversial and public way. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. Community Rules apply to all content you upload or otherwise submit to this site. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. 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. District of Oregon 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. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. If you need help with finances, they've got that covered. Lock 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. Portland, Oregon 97204 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) (Tape #FTR-9B) (gw) (Entered: 04/19/2019) Secure .gov websites use HTTPS (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) (Entered: 04/19/2019) Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. 18:1957 CONSPIRACY TO COMMIT MONEY LAUNDERING Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. Brian A. Oliver, a former owner and executive vice president of Aequitas Management, LLC and several other Aequitas-related companies pleaded guilty to conspiring to commit mail and wire fraud and money laundering. The company opened slick new offices in New York City. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. Portland, Oregon 97204 It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. The company's general counsel just quit. MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. | Advertising There was the commercial lender. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. | Link Errors He is scheduled to be sentenced on Aug. 5. A .gov website belongs to an official government organization in the United States. Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. (1) Counsel Present for Defendant: Whitney Boise, Kendra Matthews. John Deere boasted record profits in 2021 and finally struck a deal with striking union workers. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Jesenik also must pay a civil penalty of $625,000. Not guilty pleas and denial of forfeiture allegation entered. | Sign In, Verdict Corrections ORDER Defendant released on previous conditions. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. In anticipation of the institution of these proceedings, Respondent has submitted an Offer . 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 court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. Longtime Aequitas No. Signed on 4/19/2019 by Judge Michael W. Mosman. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. RIA Intel is part of Delinian. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. 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. 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. 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 They also have people who have helped raise money and sell businesses so they can help with that too. U.S. Attorney's Office, District of Oregon, Former Aequitas CEO and Senior Executives Indicted in Fraud and Money Laundering Conspiracy, Forsage Founders Indicted in $340M DeFi Crypto Scheme, Russian Cryptocurrency Money Launderer Pleads Guilty, Former Fugitive Wanted in Oregon for Real Estate Scam Pleads Guilty, Former Aequitas CEO and Senior Executives Indicted In Fraud and Money Laundering Conspiracy. Brian Rice and Andrew MacRitchie left their corporate posts for jobs at Aequitas Capital. The Oregonian first reported the criminal charges and guilty plea. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. 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). Then Corinthian went bankrupt. The Government does not seek detention and Defendant is released on conditions. Have a question about Government Services? Prosecutors claim the Aequitas executives misled company investors about how their money was being used. Main Office: On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . 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 A. Oliver, age 51, resides in Aurora, Oregon. Probation. 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. A lock ( Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. Official websites use .gov No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. Another was a utility executive who helped change Portlands business landscape. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. 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. There was no more hiding the fact that Aequitas was broke. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. Lock (chso). He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon. (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. All three are permanently barred from the securities industry. 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. Investors had been bilked out of hundreds of millions of dollars, the SEC said. [More: Aequitas meltdown underscores the importance of due diligence, caution]. 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. PORTLAND, Ore.U.S. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. 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. They've got that too. But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. 2023 InvestmentNews LLC. More Local News to Love Start today for 50% off Expires 3/6/23. PORTLAND, Ore.U.S. Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . 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. He was even on the board of the Arlington Club. 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. He declined to comment. Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. Secure .gov websites use HTTPS The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. But it appears they are far from done. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. Realized Launches Game Changing Platform for Direct Real Estate Investment, The CFP Board Calls Out Crypto in Code of Ethics and Standards, Modern Slavery Act Transparency Statement. 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. Aequitas collapsed in 2016 owing about $600 million to investors. Bob Jesenik has not been criminally charged.