Securities and Exchange Commission (SEC) Charges Aequitas

March 10, 2016.  Today the Securities and Exchange Commission filed a lawsuit in federal district court in Portland, charging Aequitas and three top executives with defrauding investors. The SEC  press release   reports that Aequitas hid its dire financial condition while raising more than $350 million from investors. Moreover, the complaint alleges that money from new investors was used to pay earlier investors – a Ponzi scheme.

The SEC’s complaint is posted here .  Aequitas executives Robert J. Jesenik , Brian Oliver, and Scott Gillis are named as defendants in the complaint, which alleges that they were all well aware of the deteriorating financial condition when they continued to accept precious savings from trusting investors.

Aequitas Management, Aequitas Holdings LLC, Aequitas Commerical Finance LLC, Aequitas Capital Management Inc., and Aequitas Investment Management LLC as well as top executives Jesenik, Oliver, and Gillis are all charged by the SEC with violation of the federal securities laws.

We knew the SEC’s investigation was occurring, and are not surprised by the SEC filing.  In fact, some of its allegations are similar to allegations we made in a case we filed earlier this week for some of our clients.   The  SEC complaint does shed some light on just how bad the financial situation was at Aequitas, and for how long.  The complaint alleges that “By at least July 2014, Jesenik and Oliver knew that redemptions and interest payments to prior investors were being paid primarily from new investor money in a Ponzi-like fashion, and that very little investor money was being used to purchase trade receivables. The cash flow shortages at ACF and Aequitas Holdings continued with increased severity through 2015.”

For recent updates, see Aequitas Updates.

If you have questions about how this latest SEC action will affect your Aequitas investment, contact our office at 800.647.8130 or bbanks@samuelslaw.com.Our home page gives an introduction to this informational site and you may review our extensive credentials and experience here.

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