Please sign in or register to comment. MacRitchie, the former utility executive, was the picture of respectability. Learn more about reprints and licensing for this article. They've got that too. Longtime Aequitas No. 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. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. I have really enjoyed working with Seth, Brian and the Cathedral team. Oliver is the first former Aequitas Capital executive to be criminally charged. Main Office: Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. 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. Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. Aequitas Settles With SEC for $540 Million as Three Top - RIAIntel 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. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. District of Oregon | Former Aequitas Owner and Executive Vice President It began to default on the interest payments owed its legion of mom and pop investors. Community Rules apply to all content you upload or otherwise submit to this site. 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. Worse, regulators from the U.S. Consumer Financial Protection Bureau and the state Department of Justice began taking a hard look at the colleges agreement with Aequitas. brian oliver, aequitas Much of the cash went to make the payments owed to other investors. Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com. 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. Brian Oliver is an Executive Vice President & President, Aequitas Financial Services Network at Aequitas Capital Management based in Lake Oswego, O regon. 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. Scott Bradford is the lead prosecutor on the case. According to a Complaint filed on March 10, 2016 in Oregon federal district court, the SEC has brought claims against Aequitas Management, LLC (CRD# 143780/SEC# 801-68039) and three Aequitas executives, Robert J. Jesenik, Brian A. Oliver, and N. Scott Gillis for defrauding investors and for a breach of fiduciary duties. If you missed the last issue of InvestmentNews, you can access it here. 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. Ledger was the co-founder of Aequitas, which was then a small New York based company that dealt primarily in commercial paper. Aequitas specialized in debt. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. But it appears they are far from done. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Bob Jesenik, three other former Aequitas executives - Oregonlive There was the motorcycle leasing company. | Link Errors 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. Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. He was even on the board of the Arlington Club. Share sensitive information only on official, secure websites. The company opened slick new offices in New York City. Government summarized charges and terms of plea agreement. Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. 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. There was no more hiding the fact that Aequitas was broke. Investment adviser: Aequitas lied to investors, hid - oregonlive By late 2015, Aequitas was suffering one of its periodic cash flow crises. Ledger left the company in 2005 in a highly controversial and public way. A locked padlock Defendant advised of rights. PDF Former Aequitas Owner and Executive Vice President Pleads Guilty - DOL An official website of the United States government. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). (2), Outcome: 04/19/2019 9 Order Setting Conditions of Release as to Defendant Brian A. Oliver. Oliver was also charged criminally for his conduct. Lock Official websites use .gov The current Aequitas Capital Management lawsuit was brought on by the heirs of Matthew Ledger. All three are permanently barred from the securities industry. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. Investors agree to $234.6M in settlements in Aequitas was - Portland Gillis was the second Aequitas chief financial officer. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. 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? Until now, Rice and MacRitchie have faced minimal legal expenses. 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. Defendant waived reading of the Information. Marketing? Have a question about Government Services? He declined to comment. Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. Brian A Oliver, Aequitas Capital Mgmt Inc: Profile and Biography This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. Gillis was the second Aequitas chief financial officer. 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. Sam Kauffman is MacRitchies attorney. RIA Intel is part of Delinian. All rights reserved (About Us). (See separate order.) It is believed that since he was ousted from Aequitas, Jesenik has been. 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 The Oregonian first reported the criminal charges and guilty plea. Rice acknowledged in court filings that he's a suspect in the case. 13. All material subject to strictly enforced copyright laws. Once a high-flying Lake Oswego . Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. 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. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. Share sensitive information only on official, secure websites. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. | Store Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. But prosecutors allege the Aequitas executives lied about the firms financial performance. Rice, a longtime Portland banker who eventually became regional president for Key Bank, gave up the big downtown office to join Aequitas in 2014. Other funds went to pay their salaries. 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 received a Bachelor of Science degree from Oregon State University. Luminaries from the downtown business establishment wanted to join the team. PORTLAND, Ore.U.S. Claim Data and Trends - EPIC Insurance Brokers & Consultants Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. 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. 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. 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. 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 A lock ( Counsel Present for Defendant: Whitney Patrick Boise and Kendra M. Matthews. He committed suicide in an attempt to hide . 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? Brian Oliver, Aequitas Capital's longtime No. Investors had been bilked out of hundreds of millions of dollars, the SEC said. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. They agreed to plead guilty and cooperate with the government. Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. SEC Posts Notice of Covered Action Regarding Case Against Aequitas 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. The high-interest loans were terrible for students. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. Five of the six senior Aequitas executives have been charged with federal crimes or have pleaded guility. Waiver of indictment signed and accepted by the Court. 2020 update: Aequitas investors recoup some money. Former Aequitas CEO and Senior Executives Indicted in Fraud and Money 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. ORDER Presentence Report to be prepared by U.S. The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. Brian has been a Senior Advisor with Cathedral Consulting since 2017. | Privacy Statement. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. If the sentencing materials are not received on time or the Court is not advised that none will be filed, the sentencing may be rescheduled. 2 executive Brian Oliver pleaded guilty to the same charges in April. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. (kms) (Entered: 04/19/2019), Home 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. Investment adviser: Aequitas lied to investors | The Seattle Times Defunct Aequitas misled investors, cooked books, ran Ponzi - oregonlive The company's general counsel just quit. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. 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! The new indictments bring to six the number of former Aequitas executives charged with defrauding investors. District of Oregon It is being prosecuted by Ryan W. Bounds, Christopher Cardani and Siddharth Dadhich, Assistant U.S. 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. This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. (Court Reporter Ryan White) (kms) (Entered: 04/19/2019) Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. MacRitchie was the companys executive vice president and chief compliance officer. Jesenik also must pay a civil penalty of $625,000. PORTLAND, Ore.U.S. 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 . An official website of the United States government. Former Aequitas Owner and Executive Vice President . One of Aequitas biggest moneymakers disappeared almost overnight. 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. A locked padlock There was the company that bought bad debt from hospitals for pennies on the dollar and then tried to collect on the debt. 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. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. SEC Charges Oregon-Based Investment Group and Executives With Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. 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. 2023 InvestmentNews LLC. Prosecutors claim the Aequitas executives misled company investors about how their money was being used. I have really enjoyed working with Seth, Brian and the Cathedral team.. 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. Gillis was the second Aequitas chief financial officer. 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. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. 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. ) or https:// means youve safely connected to the .gov website. PORTLAND, Ore.U.S. MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. 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. 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. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. Guilty pleas entered as to Counts 1 and 2 of the Information. SEC v. Aequitas Management, LLC; Aequitas Holdings, LLC; Aequitas Three other former Aequitas executives, including a former Portland bank president and a senior utility executive, were also charged. Aequitas collapsed in 2016 owing about $600 million to investors. But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . Subscribe for original insights, commentary and analysis of the issues facing the financial advice community, from the InvestmentNews team. 2023 RIA Intel, an Institutional Investor Publication. A locked padlock ORDER granting the Government's oral motion to unseal the case. Get started today before this once in a lifetime opportunity expires. Main Office: Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. The Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors. Brian Oliver, Aequitas Capital's longtime No. Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. Sentencing materials are due no later than 7/31/2019. Court finds guilty pleas to be knowing and voluntary. They both opted not to talk. On March 10, 2016, the Securities and Exchange Commission (" SEC ") filed a complaint in this Court against the Entity Defendants 1 and three individual defendants, Robert J. Jesenik, Brian A. Oliver, and N. Scott Gillis. Court finds defendant capable and competent to enter plea. A lock ( As Aequitas grew, its profile in the community also increased. Rice served as Aequitass executive vice president and president of wealth management. Email USAO-OR. SEC charges advisor over Aequitas conflicts of interest. 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. Email USAO-OR. Secure .gov websites use HTTPS 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. 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