Aequitas Update From Robert Banks on March 20, 2016
As a part of its securities fraud lawsuit against defendants Aequitas, Robert Jesenik, Brian Oliver and Scott Gillis, the SEC and the defendants stipulated (agreed) to the entry of an Interim Order Appointing a Receiver. The Interim Order appoints a receiver to take over the operations and liquidation of Aequitas. And, it stays (stops) any pending or anticipated litigation brought by any parties except the Receiver against the SEC defendants and a host of other entities called the “Receivership Entities.” We are posting a copy of the Interim Order here. The court allowed parties until March 18 to file objections to the Interim Order.
We filed an objection seeking permission to pursue their claims against defendants we believe our responsible for our clients’ losses. Many of them are identified in our objection which is posted here. We have already filed one case against a Registered Investment Advisory Firm and its president. That case is not affected by the Interim Order. Some of the other defendants we intend to bring claims against are currently protected by the Interim Order, however. We argue in our objection that our clients have lost $11 million, and that they should be able to bring their individual claims to recover their losses. Our investigation reveals that there were many people and companies who helped Aequitas to implement its plan to sell high risk promissory notes and funds by misrepresenting that they were safe and secure and our clients want us to hold them accountable. The defendants include law firms, accountants, broker-dealers, custodians of Aequitas notes, and individuals who participated in the scheme. A second part of our objection asks the court to require the Receiver to consider costs when hiring professionals to assist him, because the senior partners at the law firms the Receiver has already selected to help wind down the Aequitas entities have billing rates of higher than $825 per hour. Our objection was filed with the court on March 18, 2016. We are hoping for a decision from the court in the next two or three weeks.
If you have questions, concerns, or information about Aequitas investments, please contact our office at 800.647.8130. Our home page gives an introduction to this informational site and you may review our extensive credentials and experience here.