PORTLAND, Ore. — A federal jury in Portland found three former Aequitas Capital Management executives guilty on some charges related to what is likely the largest white collar criminal case in Oregon history. The three were acquitted on some charges.
Former Aequitas executives Robert Jesenik, Brian Rice and Andrew MacRitchie were charged in a 30-count indictment. The charges followed a Securities and Exchange Commission investigation that found Aequitas was operating in a "Ponzi-like" fashion.
Jurors found the three guilty on multiple counts of wire fraud, and one count of conspiracy to commit wire and mail fraud.
Jesenik, Aequitas' former CEO, was also found guilty of causing a false statement to be made on a bank loan application.
All three were found not guilty of money laundering.
Sentencing is set for Sept. 7 in the same U.S. District courtroom in Portland where the trial took place.
At its height, Aequitas had more than $1 billion of assets under management and 150 employees. By the time the firm imploded, it owed some $600 million to investors, about half of which was recovered by a receiver through the sale of assets.
According to prosecutors, Aequitas was a Ponzi scheme that lasted at least 18 months, starting in June 2014, when Corinthian Colleges defaulted on $5 million-per-month recourse payments on student loan debt that Aequitas had purchased. But even before then, Aequitas was in trouble, Assistant U.S. Attorney Chris Cardani told jurors.
The Portland Business Journal, a KGW news partner, has covered the trial extensively. Here’s their report on today’s verdict. And here’s the PBJ’s full coverage of the Aequitas case.
