Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. It is being prosecuted by Scott E. Bradford and Ryan W. Bounds, Assistant U.S. Rice headed Key Bank in Oregon for 12 years. Attorneys for the receiver now in charge of Aequitas, have voiced alarm at the share of the insurance money spent by Jesenik. Counsel Present for Defendant: Whitney Boise, Kendra Matthews. 04/19/2019 12 Minutes of Proceedings: Entry of Plea Hearing held before Judge Michael W. Mosman for Defendant Brian A. Oliver. PORTLAND, Ore.U.S. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. Mike Esler, another attorney for Aequitas investors, credited federal prosecutors for sticking with an extremely complex case all the way to the indictment of Aequitas leader Jesenik. 2023 RIA Intel, an Institutional Investor Publication. One of Aequitas biggest moneymakers disappeared almost overnight. 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 Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Both Rice and MacRitchie have asked the court for access to Aequitas insurance money to cover their defense costs. Main Office: 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. Wealth Management as an industry doesnt understand direct real estate and real estate certainly doesnt understand wealth management, says Realized founder David Wieland. 04/19/2019 13 Plea Agreement as to Brian A. Oliver (kms) (Entered: 04/19/2019) The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. Community Rules apply to all content you upload or otherwise submit to this site. ) or https:// means youve safely connected to the .gov website. They also have people who have helped raise money and sell businesses so they can help with that too. All rights reserved (About Us). A locked padlock In these roles, he was responsible for directing Aequitass overall financial policies and accounting functions. He was even on the board of the Arlington Club. This case is being investigated by the FBI, IRS Criminal Investigation, and the U.S. Department of Labor Employee Benefits Security Administration. 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. As Aequitas grew, its profile in the community also increased. 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 Aequitas entities, which are in receivership, will have to pay $540 million in disgorgement and interest as part of the final judgment. 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). Nevertheless, Papak ruled in favor of Jeseniks request for access to additional insurance funds to cover his defense. It is free to register and only takes a minute or two. 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. The Oregon firm thought it had hit the motherlode when it got into the college debt business. This special highlights the best of the fifth annual event which was held in Singapore from November 14-17. Bob Jesenik has not been criminally charged. Aequitas was allegedly a fraud on top of another fraud Corinthian Colleges, the scandal ridden for-profit college that went bankrupt in 2015. Share sensitive information only on official, secure websites. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". 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. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. 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. He will be sentenced on August 5, 2019before U.S. District Court Judge Michael W. Mosman. 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. This story was revised on Aug. 21, 2020 to correct some details about Brian Rices professional background. Brian A. Oliver, age 51, resides in Aurora, Oregon. He is scheduled to be sentenced on Aug. 5. Brian received a Bachelor of Science degree from Oregon State University. Rice included in his court filings a copy of an April 23 letter from the U.S. Attorneys office in Portland informing him that you are a subject of a federal criminal investigation concerning fraud that occurred at Aequitas.. 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 . But they made good money for Aequitas and its investors. A .gov website belongs to an official government organization in the United States. The company had three policies each for $5 million of coverage. | Link Errors Oliver faces a maximum sentence of 30 years in prison, a $250,000 fine or twice the gross . Brian has been a Senior Advisor with Cathedral Consulting since 2017. | Advertising Defendant advised of rights. Advisors providing advice on cryptocurrency-related assets should do so with caution, according to a new report by the CFP Board. 2 executive Brian Oliver pleaded guilty to the same charges in April. 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. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. As part of their plea agreements, they have both agreed to pay restitution in full to their victims as determined and ordered by the court. 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. 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. (chso). 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. 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 material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Advance Local. He also established Aequitass New York Office and directed Aequitass Lux Fund, a Luxembourg-based fund used to solicit international investors. There was the commercial lender. Court finds guilty pleas to be knowing and voluntary. Theyve recovered much of that money in a series of civil lawsuits against the professional firms that worked for Aequitas. Sentencing materials are due no later than 7/31/2019. 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. 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. I have really enjoyed working with Seth, Brian and the Cathedral team. 13. There are also questions about whether Jesenik and other defendants spent the money appropriately. Left to right they are Bob Jesenik, Scott Gillis, Craig Froude (not charged with any crime,) Brian Rice, Andrew MacRitchie and Brian Oliver. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. ORDER granting the Government's oral motion to unseal the case. 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? 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. 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. As part of his plea agreement, Gillis has also agreed to pay restitution as determined by the government and ordered by the court. Aequitas specialized in debt. Aequitas also had tentacles spread throughout the RIA world. Have a question about Government Services? 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. Accounting giant Deloitte, stock trader T.D. Add Andrew MacRitchie and Brian Rice, second and third from right, to the list of former Aequitas executives now facing substantial legal defense costs. Secure .gov websites use HTTPS ) or https:// means youve safely connected to the .gov website. The firm sold more than $300 million worth of private investment notes, mostly through financial advisers. Irvine, California-based Eric Gallinger is affiliating with LPL through Stratos Wealth Partners. 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President, Cathedral Finance|Senior Advisor. By late 2015, Aequitas was suffering one of its periodic cash flow crises. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. Court finds defendant capable and competent to enter plea. It was the beginning of the end for the high-flying company. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). Lock PORTLAND, Ore.U.S. Co-founders Bob Jesenik and Brian Oliver had participated in too many sketchy deals for sophisticated Oregon investors to feel comfortable with them. Defendant sworn and examined. A federal court in Oregon entered final judgments against Aequitas Management requiring the firms receiver to pay $453 million in disgorgement. Sam Kauffman is MacRitchies attorney. They've got that too. 2 executive, on Friday pleaded guilty to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. 0. Arraignment held for Defendant Brian A. Oliver on Counts 1 and 2 of the Information. 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. MacRitchie, the former utility executive, was the picture of respectability. Brian has over 30 years experience in providing corporate finance and consulting solutions to small and medium sized businesses. They also have people who have helped raise money and sell businesses so they can help with that too. 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. Timothy Laniers firm in Neptune Beach, Florida, focuses on serving doctors and health care executives. 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 All three are permanently barred from the securities industry. Oliver was originally scheduled to be sentenced on Aug. 5, but the sentencing date was moved to Nov.. 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. 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. 1000 SW Third Ave Suite 600 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. Brian Rice and Scott Gillis, two of the company's six senior partners, resigned in recent weeks. They hurt a whole lot of people.. Brians experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. Have a question about Government Services? The court also required Robert J. Jesenik, the firm's former CEO, and Brian A. Oliver,. That has changed as the criminal case nears the indictment stage. The firm purchased or invested in other financial firms, many of them glorified debt collectors. 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. 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. | Articles | Editor Defendant waived reading of the Information. Community Rules apply to all content you upload or otherwise submit to this site. The Oregonian first reported the criminal charges and guilty plea. 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 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. If you purchase a product or register for an account through one of the links on our site, we may receive compensation. Some money from new investors was allegedly used to pay earlier investors 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.