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. ) or https:// means youve safely connected to the .gov website. Neither were charged when the U.S. Securities and Exchange Commission shut Aequitas down and filed a civil lawsuit in March 2016. They've got that too. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. It was actually a giant Ponzi scheme, they said, in which the company relied on money from new investors to repay the old. Attorney Billy J. Williams announced today that Brian A. Oliver,a former owner and executive vicepresident of Aequitas Management, LLC and several other Aequitas . According to court documents, Aequitas created and operated investment funds that purchased trade receivables in education, health care, transportation, and other consumer credit areas. 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Jesenik, Rice, and MacRitchie are all on pre-trial release pending a five-week jury trial scheduled to begin on April 3, 2023. Theyve got a team that really loves entrepreneurship and is equipped with different skill sets. PORTLAND, Ore.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. More Local News to Love Start today for 50% off Expires 3/6/23. Attorneys for the District of Oregon. It was the beginning of the end for the high-flying company. Signed on 4/19/19 by Magistrate Judge Stacie F. Beckerman. 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. Its not just the amount of insurance money that went to Jesenik that concerns the receiver. An official website of the United States government. All three are permanently barred from the securities industry. The Oregonian/OregonLive began investigating Aequitas in 2014, when it linked the firm to accusations of predatory student loans at Corinthian. 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. In anticipation of the institution of these proceedings, Respondent has submitted an Offer . The SECs complaint alleged that Jesenik and Oliver were aware of Aequitass calamitous financial condition yet continued to solicit millions of dollars from investors to pay the firms ever-increasing expenses and attempt to stave off the impending collapse of the business. It added that Gillis allegedly concealed the firms insolvency from investors and was aware that Jesenik and Oliver continued soliciting investors so that Aequitas could pay operating expenses and repay earlier investors with money from new investors.. All Rights Reserved. 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! Please sign in or register to comment. 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. Share sensitive information only on official, secure websites. Portland, Oregon 97204 Oliver also was charged criminally for his conduct and has pled guilty, but has not yet been sentenced. The company opened slick new offices in New York City. Brian Mariash, James Lowther and their team will operate as Mariash Lowther Wealth Management in Sarasota, Florida. Cookie Settings/Do Not Sell My Personal Information. If you missed the last issue of InvestmentNews, you can access it here. But much of that money has already been spent. Until now, Rice and MacRitchie have faced minimal legal expenses. Plea Petition and Plea Agreement signed and accepted by the Court. Former CFO N. Scott Gillis was required to pay a $300,000 civil penalty. The company had three policies each for $5 million of coverage. But prosecutors allege the Aequitas executives lied about the firms financial performance. Scott Bradford is the lead prosecutor on the case. 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 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. PORTLAND, Ore.U.S. The court appointed receiver now in charge of whats left of Aequitas opposes Rices and MacRitchies request for access to the insurance money. 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. As Aequitas grew, its profile in the community also increased. But the defendants have already spent more than $10 million on legal costs, exhausting the first two policies. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". PORTLAND, Ore.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. But I think my clients will be thrilled. Nelson Scott Gillis, 69, of Lake Oswego, Oregon, pleaded guilty to one count of making a false statement to a bank. The third policy is now being consumed even though the criminal case is just getting underway and the pool of potential defendants is expanding. Aequitas collapsed in 2016 owing about $600 million to investors. RIA Intel is part of Delinian. Now both have been sucked into the criminal fraud investigation of the collapsed firm. Court orders Aequitas to disgorge $453 million in fraud case 0. SECURITIES AND EXCHANGE COMMISSION v. AEQUITAS MANAGEMENT, LLC - Leagle Community Rules apply to all content you upload or otherwise submit to this site. They are also prohibited from violating the SECs antifraud provisions. Sam Kauffman is MacRitchies attorney. Rice served as Aequitass executive vice president and president of wealth management. Brian's experience encompasses a variety of positions across commercial banking, investment banking, alternative asset management, and business advisory services. | Articles Deloitte Is Finally Finished with That Whole Aequitas Investors Lawsuit 1000 SW Third Ave Suite 600 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. Aequitas Settles With SEC for $540 Million as Three Top - RIAIntel Brian Oliver and Olaf Janke, Aequitas chief financial officer before Gillis, pleaded guilty to similar charges. 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. The Aequitas entities, Jesenik, and Gillis consented to the entry of final judgment without admitting or denying the SECs allegations. He is scheduled to be sentenced on Aug. 5. If convicted on all charges, each of the defendants could face decades in prison and millions of dollars in fines and restitution, as well as five years supervised release following their prison terms. 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.. 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. Plus, Jeseniks monthly legal fees approximately quadrupled after he hired new counsel in approximately March 2017. Aequitas finances were already spiraling down, and the worse they got, the more student debt the firm bought from Corinthian. Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Brian A. Oliver ("Oliver" or "Respondent"). SEC v. Aequitas Management, LLC; Aequitas Holdings, LLC; Aequitas Defendant advised of rights. 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. 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. Marketing? 13. He is scheduled to be. MacRitchie was the companys executive vice president and chief compliance officer. Thom Maher is launching a firm, Maher Wealth Management, in Phoenix. Its been a long time coming, Kayser said. I have really enjoyed working with Seth, Brian and the Cathedral team. It began to default on the interest payments owed its legion of mom and pop investors. Among his responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitass affiliated RIAs. | Advertising With love for the 60/40 portfolio fading, 50/30/20 looks to be the cool new kid on the block. Secure .gov websites use HTTPS Accounting giant Deloitte, stock trader T.D. Re: United States of America v. Brian A. Oliver - MoreLaw 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 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