OREGON, USA — A federal judge on Thursday sentenced three former Aequitas Capital Management executives to prison for their roles in one of Oregon’s largest investor fraud cases.
Former Aequitas Chief Executive Robert Jesenik received the longest sentence of the men, at 14 years. Former Chief Compliance Officer Andrew MacRitchie was sentenced to five years and 10 months while former Executive Vice President Brian Rice received 37 months.
Jesenik must pay about $1.5 million while MacRitchie must pay $689,662. Rice was ordered to pay $116,627.
U.S. District Michael Simon said each defendant will get three years of supervised release after they're out.
Prosecutors had recommended that Jesenik receive 20 years, that MacRitchie receive 17 and a half years and Rice receive 10 years.
At its peak, Lake Oswego-based Aequitas had some $1 billion of assets under management, with 150 employees. By its collapse, Aequitas owed hundreds of millions to investors. A receiver managed to recover about half through asset sales.
Aequitas imploded in 2016 and was accused by securities regulators of operating in a “Ponzi-like manner.” Federal prosecutors described the company similarly over a six-week trial this spring, arguing executives misled investors about how their money was being used: Much of it was being used to pay past investors and company operating costs, instead of going toward hospital and student loan receivables.
Law officials have said the case is one of the region’s largest in terms of scope and the financial effect on those who invested with Aequitas, which had attracted prominent backers from Portland and beyond.
The Portland Business Journal, a news partner of KGW News, has more on the sentencing decision.