By that time, it was clear to Aequitas executives the company was in deep financial trouble., Kayser added. Get started today before this once in a lifetime opportunity expires. It entered into a deal to buy student loans from Corinthian, the notorious for-profit college. (See separate order.) Counsel Present for Defendant: Whitney Boise, Kendra Matthews. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Attorneys for the District of Oregon. 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. 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. 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. The Oregon firm thought it had hit the motherlode when it got into the college debt business. 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. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. I have really enjoyed working with Seth, Brian and the Cathedral team. Gillis faces a maximum sentence of 30 years in prison, an $8.4 million fine, and five years supervised release. 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). 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. He worked for Portland banks for much of his career before he was named regional president of Key Bank in 2006. Portland, Oregon 97204 Its not just the amount of insurance money that went to Jesenik that concerns the receiver. Main Office: Federal regulators claimed that Aequitas executives misled investors for years about the companys true financial condition. 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. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. Oliver was a partial owner and Executive Vice President of Aequitas Management, LLC ("Aequitas Management . 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. 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. He is scheduled to be sentenced on Aug. 5. 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. 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. 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. As Aequitas grew, its profile in the community also increased. 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. 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. | Link Errors [More: Aequitas meltdown underscores the importance of due diligence, caution]. Lock Have a question about Government Services? Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. Aequitas investors lost about $600 million after the collapse. He was even on the board of the Arlington Club. 04/19/2019 14 Plea Petition and Order Entering Plea as to Defendant Brian A. Oliver. Counsel Present for the Government: Scott E. Bradford and Ryan W. Bounds. | Advertising Rueben Iniguez, a lawyer in the federal defenders office in Portland, is representing Jesenik. 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. Share sensitive information only on official, secure websites. ORDER granting the Government's oral motion to unseal the case. 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. 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. MacRitchie was the companys executive vice president and chief compliance officer. All material subject to strictly enforced copyright laws. A .gov website belongs to an official government organization in the United States. (chso). He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. Six months later, on or about June 30, 2015, Gillis signed an amended loan agreement with Wells Fargo on Aequitass behalf. An official website of the United States government. Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. Official websites use .gov From June 2014 through February 2016, the former executives 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. (Entered: 04/19/2019) 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. II. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Waiver of indictment signed and accepted by the Court. Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. 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. 1000 SW Third Ave Suite 600 They also have people who have helped raise money and sell businesses so they can help with that too. A Salem, Oregon man pleaded guilty today for using Twitter to threaten violence against employees of Robinhood Markets, Inc., an online financial services company based in Menlo Park, California. A native of the United Kingdom, he served as the British honorary consul in Portland for several years. Another was a utility executive who helped change Portlands business landscape. Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. Oliver was also charged criminally for his conduct. 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. 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. But much of that money has already been spent. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. PORTLAND, Ore.U.S. His attorneys have submitted bills for at least 2.7 million, far more than any other defendant. The Oregonian first reported the criminal charges and guilty plea. PORTLAND, Ore.U.S. 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 He was the British honorary consul to Portland. 1000 SW Third Ave Suite 600 But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. Not guilty pleas and denial of forfeiture allegation entered. Federal prosecutors have already cut guilty plea deals with two former Aequitas executives. 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. In a separate proceeding, the SEC barred the three from the securities industry. On or about January 12, 2015, Aequitas entered into a loan agreement with Wells Fargo to establish a $100 million line of credit. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. Ledger left the company in 2005 in a highly controversial and public way. MacRitchie was ScottishPowers point man in its efforts to buy Pacificorp and served as an executive vice president there. 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. But it appears they are far from done. 2020 update: Aequitas investors recoup some money. A lock ( Brian A Oliver is Exec VP & Pres:Financial Svcs at Aequitas Capital Mgmt Inc. See Brian A Oliver's compensation, career history, education, & memberships. 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. Aequitas borrowed funds from other financial institutions, including Wells Fargo Bank, N.A., to purchase these trade receivables. ORDER Presentence Report to be prepared by U.S. Brian and his wife of 30 years live in Aurora, Oregon where they raised their family. The final judgments prohibit Jesenik, Oliver, and Gillis from serving as officers or directors of any public company. Secure .gov websites use HTTPS 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. Oliver is the first former Aequitas Capital executive to be criminally charged. 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. Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . Aequitas specialized in debt. 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. If you need help with finances, they've got that covered. District of Oregon Attorneys for the District of Oregon. ORDER Defendant released on previous conditions. Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. Official websites use .gov 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. More Local News to Love Start today for 50% off Expires 3/6/23. 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. Secure .gov websites use HTTPS 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. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. | Recent Lawyer Listings He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. 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Between 2011 and 2014, Aequitas purchased more than $561 million in student loan debt, almost all of which was with Corinthian. The Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. 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 . A .gov website belongs to an official government organization in the United States. But prosecutors allege the Aequitas executives lied about the firms financial performance. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. 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 A. Oliver, age 51, resides in Aurora, Oregon. 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) 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. Defendant advised of rights. Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023. As such, he was responsible for the development and implementation of risk management and compliance processes and procedures. 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. Until now, Rice and MacRitchie have faced minimal legal expenses. Brian Oliver, Aequitas Capital's longtime No. I have really enjoyed working with Seth, Brian and the Cathedral team.. 18:1957 CONSPIRACY TO COMMIT MONEY LAUNDERING Community Rules apply to all content you upload or otherwise submit to this site. (kms) (Entered: 04/19/2019), Home Please sign in or register to comment. Defendant advised of rights. Brian Oliver - Senior Advisor & President, Cathedral Finance - Cathedral Consulting | LinkedIn Brian Oliver At Cathedral we help entrepreneurs with momentum build value in their business. A locked padlock Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. 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. 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. 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 Other funds went to pay their salaries. An official website of the United States government. They've got that too. On March 16, 2016, pursuant to the Stipulated Interim Order Appointing Receiver, the Receiver was appointed as receiver . An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty. 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. Guilty pleas entered as to Counts 1 and 2 of the Information. 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. But this one was worse. More Local News to Love Start today for 50% off Expires 3/6/23. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. 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 Investors had been bilked out of hundreds of millions of dollars, the SEC said. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. Ameritrade and big law firms like Sidley Austin gave the local operation a sheen of legitimacy. Court finds defendant capable and competent to enter plea. ) or https:// means youve safely connected to the .gov website. 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. Over the last few years Cathedral has really provided sage advice as weve been growing our green building companies. B. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. 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. 2023 Advance Local Media LLC. They agreed to plead guilty and cooperate with the government. He is scheduled to be. 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. Chris Kayser, a Portland lawyer who represented 120 people who had invested in Aequitas, saw firsthand how unsophisticated investors were taken advantage of. The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. 2 executive Brian Oliver pleaded guilty to the same charges in April. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. 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. Oliver is the 25% owner of Aequitas Management and an Executive Vice President of the Entity Defendants. The company's general counsel just quit. 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 Have a question about Government Services? Previously, Brian was an Executive VP, Business Development at Alternative Asset Management. brian oliver, aequitas brian oliver, aequitas Home Realizacje i porady Bez kategorii brian oliver, aequitas 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. Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". 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. Gillis was the second Aequitas chief financial officer. One of Aequitas biggest moneymakers disappeared almost overnight. This case is being investigated by the FBI, IRS-Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. Email USAO-OR. They hurt a whole lot of people.. The company opened slick new offices in New York City. | Articles Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. Brian Oliver and Olaf Janke, former senior Aequitas executives, have in recent months cut plea deals with federal prosecutors.