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But this one was worse. They also have people who have helped raise money and sell businesses so they can help with that too. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. They also have people who have helped raise money and sell businesses so they can help with that too. (kms) (Entered: 04/19/2019), Home [More: Aequitas meltdown underscores the importance of due diligence, caution]. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. A locked padlock 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. 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. For 23 years, Brian Oliver was the classic second-in-command at Aequitas Management LLC, the earnest, low-key straight arrow to the company's colorful alpha-dog CEO Bob Jesenik. YouTubes privacy policy is available here and YouTubes terms of service is available here. 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. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. PORTLAND, Ore.U.S. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Seven years ago, it was easy to believe in Aequitas. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. A .gov website belongs to an official government organization in the United States. 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) A lock ( Email USAO-OR. Get started today before this once in a lifetime opportunity expires. Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. But they made good money for Aequitas and its investors. But much of that money has already been spent. | Recent Lawyer Listings Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. 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 Investors had been bilked out of hundreds of millions of dollars, the SEC said. 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. Another was a utility executive who helped change Portlands business landscape. 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. Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. All Rights Reserved. Secure .gov websites use HTTPS Both Rice and MacRitchie were high-profile Portland executives before joining Aequitas. 1000 SW Third Ave Suite 600 Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. Brian Oliver, Aequitas Capital's longtime No. District of Oregon Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. 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. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. 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. Have a question about Government Services? 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. Please read our Terms and Conditions, Modern Slavery Act Transparency Statement, and Privacy Policy before using the site. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. | Sign In, Verdict Corrections If you missed the last issue of InvestmentNews, you can access it here. 2 executive Brian Oliver pleaded guilty to the same charges in April. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. In reporting on the Aequitas claim, a local publication, The Oregonian, wrote: "Aequitas never gained the local reputation for integrity and savvy that its executives longed for. Learn more about reprints and licensing for this article. It is free to register and only takes a minute or two. 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.. By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. 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. 1000 SW Third Ave Suite 600 He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. If you need help with finances, they've got that covered. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. Community Rules apply to all content you upload or otherwise submit to this site. Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. Much of the cash went to make the payments owed to other investors. Brian has been a Senior Advisor with Cathedral Consulting since 2017. 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. He pled guilty but has not yet been sentenced. I have really enjoyed working with Seth, Brian and the Cathedral team.. Now both have been sucked into the criminal fraud investigation of the collapsed firm. 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. Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. Attorneys for the District of Oregon. Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023. Aequitas collapsed in 2016 owing about $600 million to investors. Its been a long time coming, Kayser said. They've got that too. (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. Lock As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. 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. An official website of the United States government. Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. A .gov website belongs to an official government organization in the United States. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. 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. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Defendant advised of rights. Share sensitive information only on official, secure websites. 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. All rights reserved (About Us). He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. 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 Gillis was the second Aequitas chief financial officer. 2023 Advance Local Media LLC. Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. Its not just the amount of insurance money that went to Jesenik that concerns the 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. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . All three are permanently barred from the securities industry. 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. ) or https:// means youve safely connected to the .gov website. Cookie Settings/Do Not Sell My Personal Information. Bob Jesenik has not been criminally charged. ORDER Defendant released on previous conditions. ORDER Presentence Report to be prepared by U.S. | Articles But it appears they are far from done. 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. 18:1957 CONSPIRACY TO COMMIT MONEY LAUNDERING Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. 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. 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. Waiver of indictment signed and accepted by the Court. More Local News to Love Start today for 50% off Expires 3/6/23. The firm purchased or invested in other financial firms, many of them glorified debt collectors. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. According to court documents, Oliver, 54, of Aurora, Oregon, and unnamed co-conspirators used the Lake Oswego, Oregon, based 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. Not guilty pleas and denial of forfeiture allegation entered. Lock MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors.