Tag Archives: aequitas capital management

K2 News Update With Robert Banks

“The human tragedy here is what you don’t see when you read the news.”


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Banks Files Objection

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.

Filed Objection

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.


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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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Banks noted as key face in the Aequitas Drama

Portland Business Journal touts Samuels Yoelin Kantor securities attorney Robert Banks as key face in Aequitas Drama

key faces

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.

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Aequitas Lawsuits – how to choose

If I choose to be in and Aequitas lawsuit, which one should I choose?

The good news is that all of the lawyers and law firms who have been reported by the press as representing Aequitas investors are excellent law firms. Based on what we have heard, there are two basic approaches that law firms are taking.

1.  Some investors were referred to their lawyers by the same investment advisors that sold them their Aequitas investments.Those law firms will probably not be able to bring claims against the investment advisors who referred the clients to them. They may have some advantage in that they will be representing large numbers of investors in claims against Aequitas officers and directors, accountants and lawyers that may have participated in the sale of the Aequitas investments. The disadvantage to being part of these cases is that investors who sign up with these law firms will likely be prevented from bringing claims against financial advisors who may have sold the Aequitas notes by misrepresenting the risks and characteristics of the notes that they sold.

2. Our firm has taken a different approach. 

We are evaluating two avenues of recovery for our clients. FIRST, we will be filing claims against the investment advisors that sold Aequitas products to our clients. We will not make any agreements with any investment advisors who sold Aequitas, because we intend to bring claims against investment advisors who breached their fiduciary duties to their clients in selling Aequitas. Not every investor has such a claim. But, investors who were told by their investment advisors that these were safe investments, those who were solicited to make their purchases recently, and those who invested an unsuitable percentage of their retirement money in Aequitas and other “alternative investments” have strong claims against their advisors that ought to be evaluated. Many of those claims will be prosecuted in arbitration (instead of court) because of a provision in the investment advisory agreements. Our firm is limiting the number of clients we can accept against any one investment advisory firm, but we are reviewing claims against several different advisors in a number of states. SECOND, we also intend to pursue additional claims in court for our clients in court against other defendants who participated, aided and controlled the persons who sold the Aequitas investments. This may include officers and directors of Aequitas, its accountants, lawyers, and companies that were involved in the management of client funds held at investment advisory firms that had a connection to Aequitas.

Samuels Yoelin Kantor securities attorneys Robert Banks and Darlene Pasiczny are heading up the Aequitas investigation. Mr. Banks recently updated concerned investors with information regarding their choices for pursuing recovery. Please contact our office to discuss your situation confidentially. You can call 800-647-8130 or reach us by email atbbanks@samuelslaw.com or info@investordefenders.com

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What is going to happen to my Aequitas investment?

At this point, nobody can say with certainty what will happen to Aequitas

No one knows the answer to that question with certainty. Dividend payments have been suspended. Aequitas is reporting that it has hired a restructuring company to evaluate the situation. To me, that means that Aequitas is considering an orderly liquidation of the company and its assets. Given the recent mass layoffs, the suspension of dividends, the SEC investigation, and the way that the notes were reportedly marketed and sold, my best guess is that Aequitas will end up either in a bankruptcy or some court-supervised liquidation. Hopefully, that will result in a return of at least some of the principal back to investors, but that will depend upon a number of factors, including what assets are available after paying the costs of the liquidation, the number of creditors who may have to be paid before investors, and the number and amount of investor claims out there.

You are welcome to call our office to discuss your situation with Mr. Banks, a securities attorney with more than 33 years representing investors in arbitration and in court.

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.

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Losses In Aequitas Income Opportunity Fund II

Representing Aequitas Investors

We are representing investors who recently purchased Aequitas Income Opportunity Fund II. Based on our investigation, at least some investors in this fund were incorrectly advised that they were investing in short term loans that could be redeemed during any 90 period.  Equally significant, investors report to us that they were never advised about the financial difficulties Aequitas was already facing at the time that they purchased the Income Opportunity Fund II.  As I was quoted as saying in The Oregonian on February 20, “It is absolutely outrageous that a financial adviser would put important client retirement money into promissory notes issued by a company that was already on the ropes,”

What The Laws Say For Aequitas Investors

The law generally provides that a licensed financial advisor cannot successfully solicit or sell an investment to a client by use of misrepresentations or omissions of material fact.  If that law is violated, investors are entitled to a return of their investment proceeds upon tender of their investment back to the sellers.  To see how that law might apply to the unique purchase circumstances of individual or institutional investors, you may call our office at 800.647.8130 or contact securities attorneys Bob Banks and Darlene Pasieczny by e-mail at info@investordefenders.com.

Investor Defenders is a practice group of Samules Yoelin Kantor LLP focused on representing investors in situations where professional misconduct resulted in a financial loss. Lead securities attorney Bob Banks has earned a national reputation for his success fighting on behalf of investors in FINRA arbitration and in court for 33 years.  Consultations are complimentary and most cases are done on  contingency fee, meaning that our clients do not pay any attorney fees unless we recover losses.


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