Tag Archives: aequitas investment

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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Aequitas- Koin 6 News

Bob Banks, securities attorney with Samuels, Yoelin, Kantor LLP speaks with Koin 6 News last week about the impact of the Aequitas situation on investors

 

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

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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 Commercial Finance documents point toward Ponzi

Aequitas Ponzi- Could it be?

I received a document from a confidential source that was prepared by Aequitas and is quite enlightening.  It is written about the Aequitas Private Notes issued by ACF (Aequitas Commercial Finance), and is dated the third quarter of 2015.

It states “ACF uses proceeds from Private Notes primarily to repay prior investors.”  I interpret that to mean that the company did not have the assets to pay prior investors from its regular course of business.  I define a Ponzi Scheme as an investment scheme that operates by using new investor money to pay prior investors and creating the illusion that distributions are from operations, when they are not.

 It is beginning to sound a lot like Ponzi at Aequitas

Investors in the  ACF Private Notes who were unaware of this fact when  they made their purchases have legitimate reasons to complain, and to file claims against Aequitas principals and the advisors who sold those notes.   The law requires that investors be told all of the material facts if they are solicited to make a purchase.
So far we don’t know whether the other Aequitas programs also used new investor money to pay existing investors, but we will find out.

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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Concerned About Your Aequitas Investment?

Aequitas Concerns

Investors reading recent news about Aequitas Capital Management, Inc,. and Aequitas Investment Management, LLC are rightfully concerned. Recent reports reveal dramatic layoffs and trouble with its for-profit college partner, Corinithian. Articles expose cash flow issues, sudden layoffs, and a failure to repay investors on schedule. Mr. Banks, a securities attorney with Samules Yoelin Kantor LLP, has been speaking with investors since 2011. If you are an Aqueitas investor, Bob Banks will provide a free and confidential review of whether claims might exist based on your investments and whether you have a right to recover your loss.

The Portland Business Journal has reported trouble with Aequitas several times in the last few years. First, in early 2013 when a lawsuit was filed by American Student Financial Group in southern California. And then again in July of 2013 when more details emerged about their association with troubled student loans was revealed. Another article was published in June, 2014 when a judge ordered $2.5 million to be set aside ahead of trial. Our office started an early investigation which we announced on our our blog. It is interesting to note that former Aequitas employees mention poor fiscal management in their public reviews as well.

Bob Banks leads the Investor Defenders practice group at Samuels Yoelin Kantor, LLP. Please review his extensive credentials and experience and contact him directly by phone at  800.647.8013 or by email at bbanks@samuelslaw.com

We always encourage concerned investors to contact the North American Securities Administrators Association Nation (NASAA) or the Securities Exchange Commission (SEC)  However, while filing a complaint with these agencies is helpful for future investors, it is not likely to result in any loss recovery for you, and it does not stop the applicable statutes of limitation from running. Those time periods do not stop running until a lawsuit or FINRA arbitration claim is filed.

 

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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