By late 2015, Aequitas was suffering one of its periodic cash flow crises. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). The company had three policies each for $5 million of coverage. MacRitchie was the companys executive vice president and chief compliance officer. 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. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. More Local News to Love Start today for 50% off Expires 3/6/23. Lock Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. Gillis was the second Aequitas chief financial officer. He is scheduled to be. The company's general counsel just quit. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. Brian Oliver, Aequitas Capital's longtime No. Official websites use .gov Defendant advised of rights. 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. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. 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. Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. The sentencing for former Aequitas Capital executive Brian Oliver has been moved again. 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. 2020 update: Aequitas investors recoup some money. In April, Brian Oliver, Aequitas. ORDER Defendant released on previous conditions. All three are permanently barred from the securities industry. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. 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? Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. Share sensitive information only on official, secure websites. A locked padlock 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. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. A locked padlock | Sign In, Verdict Corrections As Aequitas grew, its profile in the community also increased. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) 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. He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon. As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. Brian Rice and Andrew MacRitchie left their corporate posts for jobs at Aequitas Capital. They are also prohibited from violating the SECs antifraud provisions. The company opened slick new offices in New York City. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. 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. His attorneys have submitted bills for at least 2.7 million, far more than any other defendant. 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. Plea Petition and Plea Agreement signed and accepted by the Court. 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. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. After graduating from Oregon State University in 1987 with a degree in Finance and minor in Economics, Brian spent the next 10 years in commercial banking with US Bank before embarking on 20 years in the Investment Banking and Alternative Asset Management industry. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. 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. All rights reserved (About Us). 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. 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. 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 There was no more hiding the fact that Aequitas was broke. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Lock 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. 2023 Advance Local Media LLC. Community Rules apply to all content you upload or otherwise submit to this site. 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. YouTubes privacy policy is available here and YouTubes terms of service is available here. Guilty pleas entered as to Counts 1 and 2 of the Information. PORTLAND, Ore.U.S. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. The new indictments bring to six the number of former Aequitas executives charged with defrauding investors. There was the commercial lender. Please sign in or register to comment. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. 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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). It is free to register and only takes a minute or two. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. Court finds defendant capable and competent to enter plea. More Local News to Love Start today for 50% off Expires 3/6/23. Previously, Brian was an Executive VP, Business Development at Alternative Asset Management. 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. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. A .gov website belongs to an official government organization in the United States. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. YouTubes privacy policy is available here and YouTubes terms of service is available here. Sentencing is set for 8/5/2019 at 9:00AM in Portland before Judge Michael W. Mosman. Waiver of indictment signed and accepted by the Court. 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. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. Brian has been a Senior Advisor with Cathedral Consulting since 2017. 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. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. (1) It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Have a question about Government Services? One of Aequitas biggest moneymakers disappeared almost overnight. | Advertising Have a question about Government Services? Cookie Settings/Do Not Sell My Personal Information. They also have people who have helped raise money and sell businesses so they can help with that too. Brian A. Oliver, age 51, resides in Aurora, Oregon. Scott Bradford is the lead prosecutor on the case. A locked padlock 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. Aequitas collapsed in 2016 owing about $600 million to investors. Former Aequitas Owner and Executive Vice President . Defendant advised of rights. But this one was worse. 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. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Sentencing materials are due no later than 7/31/2019. The company's general counsel just quit. [More: Aequitas meltdown underscores the importance of due diligence, caution]. Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023. Cookie Settings/Do Not Sell My Personal Information. Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. ORDER Presentence Report to be prepared by U.S. 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? 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. Other funds went to pay their salaries. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. 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.
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