A former CEO of Aequitas Management and three other former company executives have been indicted on fraud and money laundering conspiracy charges.
Robert J. Jesenik, 61, a former chief executive officer and founder of Aequitas Management LLC and several other Aequitas-owned entities, was charged in a 32-count indictment with conspiracy to commit mail and wire fraud, wire fraud, bank fraud, and money laundering, the U.S. Attorney's Office for the District of Oregon announced. Jesenik is a former resident of West Linn, Ore.
Also charged were Nelson Scott Gillis, 67, of Lake Oswego, Ore.; Brian K. Rice, 54, of Portland, Ore.; and Andrew N. MacRitchie, 56, formerly of Palm Harbor, Fla.
The indictments are the latest in a series of criminal and civil charges that have been tied to the activities of Aequitas since the collapse of the alternatives asset manager in 2016. A probe of the firm at that time alleged that it was at the center of a Ponzi scheme.
In the latest indictment, Jesenik, Gillis, MacRitchie, Rice, and others are accused of using 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.
"From June 2014 through February 2016, the former executives solicited investors by misrepresenting the company’s 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," the U.S. Attorney's Office said in a press release on Tuesday. "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."
Gillis was previously indicted for conspiring to submit false statements to a federally insured creditor in connection with Aequitas's activities, while 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 last year.
The defendants each face decades in prison and millions of dollars in fines and restitution, as well as five years’ supervised release following their prison terms, if convicted, the release said.