Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Learn more about reprints and licensing for this article. ) or https:// means youve safely connected to the .gov website. But they made good money for Aequitas and its investors. 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. Have a question about Government Services? The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. More Local News to Love Start today for 50% off Expires 3/6/23. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. Brian Rice and Andrew MacRitchie left their corporate posts for jobs at Aequitas Capital. ) or https:// means youve safely connected to the .gov website. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. All rights reserved (About Us). Attorneys for the District of Oregon. They also have people who have helped raise money and sell businesses so they can help with that too. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. By late 2015, Aequitas was suffering one of its periodic cash flow crises. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. 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. 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, aequitas brian oliver, aequitas Home Realizacje i porady Bez kategorii brian oliver, aequitas Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. Get started today before this once in a lifetime opportunity expires. John Deere boasted record profits in 2021 and finally struck a deal with striking union workers. It is free to register and only takes a minute or two. | Sign In, Verdict Corrections 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. Aequitas also had tentacles spread throughout the RIA world. There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. (1) Rice served as Aequitass executive vice president and president of wealth management. Another was a utility executive who helped change Portlands business landscape. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. 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. Aequitas did make legitimate investments. Main Office: 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. 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. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . 2023 RIA Intel, an Institutional Investor Publication. Defendant advised of rights. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. 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 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. Gillis was the second Aequitas chief financial officer. ORDER granting the Government's oral motion to unseal the case. An official website of the United States government. 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. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. 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. But much of that money has already been spent. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. The complaint also alleges that Aequitas Capital Management Inc. and Aequitas Investment Management LLC violated Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder, and that Jesenik, Oliver, and Gillis aided and abetted the violations of Aequitas and the affiliated entities. 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Email USAO-OR. Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. The new indictments bring to six the number of former Aequitas executives charged with defrauding investors. 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. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Gillis was the second Aequitas chief financial officer. 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. 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 Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. There are also questions about whether Jesenik and other defendants spent the money appropriately. A locked padlock Secure .gov websites use HTTPS 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. Community Rules apply to all content you upload or otherwise submit to this site. 2020 update: Aequitas investors recoup some money. Share sensitive information only on official, secure websites. 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 All material subject to strictly enforced copyright laws. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. Other funds went to pay their salaries. 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. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). The court also required Robert J. Jesenik, the firms former CEO, and Brian A. Oliver, its former executive vice president, to pay $940,806 and $235,928, respectively, in disgorgement and interest. A .gov website belongs to an official government organization in the United States. 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? Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. He pled guilty but has not yet been sentenced. 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. But now it has a bigger problem: farmers are revolting against restrictions on how they repair complex equipment. Brian Oliver, Aequitas Capital's longtime No. 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. 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. 04/19/2019 11 Waiver of Indictment by Brian A. Oliver (schm) (Entered: 04/19/2019) In a separate proceeding, the SEC barred the three from the securities industry. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. 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