Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. Portland, Oregon 97204 He will be sentenced on June 27, 2023 by U.S. District Court Judge Michael H. Simon. By the time he left, he was also in charge of Key Banks operations in Washington and Alaska. Secure .gov websites use HTTPS A locked padlock That has changed as the criminal case nears the indictment stage. Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023. No criminal charges have been filed against Bob Jesenik, Aequitas co-founder and CEO. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. 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. Government summarized charges and terms of plea agreement. 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. 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. All three are permanently barred from the securities industry. Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. From June 2014 through February 2016, Oliver and others 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. 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. A .gov website belongs to an official government organization in the United States. Brian received a Bachelor of Science degree from Oregon State University. Plus, three other Aequitas defendants former second-in-command Brian Oliver and N. Scott Gillis and Olaf Janke, former Aequitas chief financial officers have pleaded guilty to fraud and. The recent filings indicate several additional Aequitas executives, like Rice and MacRitchie, are in harms way. His attorneys have submitted bills for at least 2.7 million, far more than any other defendant. Have a question about Government Services? 04/19/2019 11 Waiver of Indictment by Brian A. Oliver (schm) (Entered: 04/19/2019) With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. Not guilty pleas and denial of forfeiture allegation entered. Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. An official website of the United States government. It began to default on the interest payments owed its legion of mom and pop investors. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. 2023 RIA Intel, an Institutional Investor Publication. MacRitchie oversaw all Aequitas accounting, legal, and audit functions, and participated in fundraising. Email USAO-OR. 1000 SW Third Ave Suite 600 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 Aequitas also had tentacles spread throughout the RIA world. Sentencing materials are due no later than 7/31/2019. (kms) (Entered: 04/19/2019), Home Marketing? In anticipation of the institution of these proceedings, Respondent has submitted an Offer . | Editor 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. 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. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. 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. The Oregonian first reported the criminal charges and guilty plea. Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. The Oregon firm thought it had hit the motherlode when it got into the college debt business. 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. They've got that too. Learn more about reprints and licensing for this article. The high-interest loans were terrible for students. By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. Official websites use .gov 1000 SW Third Ave Suite 600 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. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. They hurt a whole lot of people.. 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. The company's general counsel just quit. Defendant waived reading of the Information. The company had three policies each for $5 million of coverage. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. 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! (Entered: 04/19/2019) He declined to comment. Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. Have a question about Government Services? 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. Scott Gillis, 66, from the securities industry for their roles in a scheme that bilked hundreds of millions from investors. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. He is scheduled to be sentenced on Aug. 5. Rice served as Aequitass executive vice president and president of wealth management. Please sign in or register to comment. 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. Lock Sentencing is set for 8/5/2019 at 9:00AM in Portland before Judge Michael W. Mosman. Main Office: Also charged are Nelson Scott Gillis, 67, of Lake Oswego, Oregon; Brian K. Rice, 54, of Portland; and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Florida. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. MacRitchie was the companys executive vice president and chief compliance officer. YouTubes privacy policy is available here and YouTubes terms of service is available here. Luminaries from the downtown business establishment wanted to join the team. 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. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. | Store 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. 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. 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. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. All Rights Reserved. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. 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. The fallout continues in the Aequitas Management scandal, which has produced guilty pleas, jail sentences, big-dollar fines and, now, additional bans from the industry by the Securities and Exchange Commission (SEC). Some money from new investors was allegedly used to pay earlier investors 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. I have really enjoyed working with Seth, Brian and the Cathedral team. Email USAO-OR. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Rice headed Key Bank in Oregon for 12 years. 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. Aequitas specialized in debt. 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 Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. 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. Oliver was the primary fundraiser for ACF and the Aequitas Funds and a member of the management committees responsible for selecting or approving the investments made with investor . | Articles 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. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. 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. He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. He was the British honorary consul to Portland. 0. There are also questions about whether Jesenik and other defendants spent the money appropriately. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. One of Aequitas biggest moneymakers disappeared almost overnight. Main Office: More Local News to Love Start today for 50% off Expires 3/6/23. But prosecutors allege the Aequitas executives lied about the firms financial performance. 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. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. They also have people who have helped raise money and sell businesses so they can help with that too. 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. It is believed that since he was ousted from Aequitas, Jesenik has been. Rice, former president of Key Bank of Oregon, acknowledged in recent court filings that he is a target in the case. An official website of the United States government. All rights reserved (About Us). ORDER Presentence Report to be prepared by U.S. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. PORTLAND, Ore.U.S. Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. But I think my clients will be thrilled. 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Probation. Share sensitive information only on official, secure websites. Reset here, 1999 - 2023 citywire.com. (chso). The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. (1) Oliver faces a maximum sentence of 30 years in prison, a $250,000 fine or twice the gross . Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. A locked padlock It was the beginning of the end for the high-flying company. 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. Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. 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. Subsequent reports detailed Aequitas default on its debt, the resulting panic among investors, the secret conflicts, and the firms strange cultural mashup -- part Wall Street investment bank, part frat party, part Bible class.