Aequitas also had tentacles spread throughout the RIA world. 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. If convicted on all charges, each of the defendants could face decades in prison and millions of dollars in fines and restitution, as well as five years supervised release following their prison terms. ORDER granting the Government's oral motion to unseal the case. Now both have been sucked into the criminal fraud investigation of the collapsed firm. 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. He was the British honorary consul to Portland. Government summarized charges and terms of plea agreement. He pled guilty but has not yet been sentenced. MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. An official website of the United States government. 1000 SW Third Ave Suite 600 Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. The company opened slick new offices in New York City. In what could be the largest settlement of a securities lawsuit in Oregon history, settlements of at least $234.6 million have been secured for some 1,600 investors in a class action against third. Gillis was charged alongside former Aequitas CEO Robert J. Jesenik, 62, of West Linn, Oregon, and former Aequitas executives Brian K. Rice, 55, of Portland, and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Florida. There was the motorcycle leasing company. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. 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. SEC charges advisor over Aequitas conflicts of interest. (chso). Defendant advised of rights. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. As Aequitas grew, its profile in the community also increased. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. Counsel Present for Plaintiff: Scott Bradford, Ryan Bounds. Investors had been bilked out of hundreds of millions of dollars, the SEC said. The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. An official website of the United States government. (Tape #FTR-9B) (gw) (Entered: 04/19/2019) 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. Cookie Settings/Do Not Sell My Personal Information. Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. On August 11, 2020, the U.S. Attorneys Officeannounced that Gillis had been charged in a 34-count indictment with conspiracy to commit mail and wire fraud, wire fraud, bank fraud, and money laundering. Learn more about reprints and licensing for this article. As part of the plea agreement, Oliver has agreed to pay restitution in full to each of victims as determined and ordered by the court. Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. | Store Rice acknowledged in court filings that he's a suspect in the case. Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. 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. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. 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. Sentencing materials are due no later than 7/31/2019. Please sign in or register to comment. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. Rice served as Aequitass executive vice president and president of wealth management. 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. Brian Rice and Andrew MacRitchie left their corporate posts for jobs at Aequitas Capital. Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . B. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. 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The company had three policies each for $5 million of coverage. He is scheduled to be. 1000 SW Third Ave Suite 600 Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. All rights reserved (About Us). This is a company that talked a woman into investing nearly her entire retirement nest-egg -- about half-a-million dollars - in October 2015, Kayser said. Marketing? MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. (Entered: 04/19/2019) All material subject to strictly enforced copyright laws. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Portland, Oregon 97204 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Much of the cash went to make the payments owed to other investors. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. 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. If you need help with finances, they've got that covered. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon. On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. Defendant advised of rights. 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. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. 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. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. In a divorce settlement filed with the court, it's. Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. Court finds guilty pleas to be knowing and voluntary. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. Portland, Oregon 97204 Some money from new investors was allegedly used to pay earlier investors Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. Longtime Aequitas No. An official website of the United States government. 2020 update: Aequitas investors recoup some money. Prosecutors claim the Aequitas executives misled company investors about how their money was being used. A lock ( Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. 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. 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? 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. But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. 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. 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. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. brian oliver, aequitas brian oliver, aequitas Home Realizacje i porady Bez kategorii brian oliver, aequitas Another was a utility executive who helped change Portlands business landscape. Our team of expertsis available to help your business build value in a variety of ways including: assessments, strategic planning, corporate financing, M&A support, market research, growth marketingandmuch more! President, Cathedral Finance|Senior Advisor. Portland, Oregon 97204 ) or https:// means youve safely connected to the .gov website. There was the commercial lender. 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. Accounting giant Deloitte, stock trader T.D. Then Corinthian went bankrupt. But much of that money has already been spent. 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. Attorney Billy J. Williams announced today that Brian A. Oliver, a former owner and executive vice president of Aequitas Management, LLC and several other Aequitas-related companies has pleaded guilty to conspiring to commit mail and wire fraud and money laundering. Brian Oliver, Aequitas Capital's longtime No. 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) He declined to comment. 0. | Editor Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. Probation. Secure .gov websites use HTTPS Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. Rice, a longtime Portland banker who eventually became regional president for Key Bank, gave up the big downtown office to join Aequitas in 2014. Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. He committed suicide in an attempt to hide . They hurt a whole lot of people.. 1000 SW Third Ave Suite 600 Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. U.S. Attorney's Office, District of Oregon, Former Aequitas Senior Executive and Chief Financial Officer Pleads Guilty to Making False Statements to a Creditor, 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 Senior Executive and Chief Financial Officer Pleads Guilty To Making False Statements To a Creditor. (kms) (Entered: 04/19/2019), Home Gillis was the second Aequitas chief financial officer. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. 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. 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). PORTLAND, Ore.U.S. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Have a question about Government Services? 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. All three are permanently barred from the securities industry. Secure .gov websites use HTTPS | Privacy Statement. 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. By early January 2016, Aequitass general counsel advised Gillis and other executives that the company would soon default on payments due to Private Note investors, causing an event of default on Aequitass loan agreement with Wells Fargo. YouTubes privacy policy is available here and YouTubes terms of service is available here. Gillis was the second Aequitas chief financial officer. PORTLAND, Ore.U.S. Previously, Brian was an Executive VP, Business Development at Alternative Asset Management. 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.. Cookie Settings/Do Not Sell My Personal Information. He argues he needs the money to help defray losses suffered by Aequitas investors. Guilty pleas entered as to Counts 1 and 2 of the Information. Aequitas investors lost about $600 million after the collapse. Main Office: 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. ORDER Presentence Report to be prepared by U.S. [More: Aequitas meltdown underscores the importance of due diligence, caution]. MacRitchie, the former utility executive, was the picture of respectability. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023. 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. 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. District of Oregon 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. Official websites use .gov All three are permanently barred from the securities industry. Marketing? The Oregon firm thought it had hit the motherlode when it got into the college debt business. 2 executive Brian Oliver pleaded guilty to the same charges in April. It was the beginning of the end for the high-flying company.