How to Recover Losses on Aequitas Investments

How to Recover Losses on Aequitas Investments

How to Recover Losses on Aequitas Investments 150 150 Robert Rex, Esq.

March 10, 2016- Washington, DC

The Securities & Exchange Commission (SEC) charged Oregon based Aequitas Management and its top three executives, CEO Robert J. Jesenik, executive VP Brian A. Oliver,  and  former CFO N. Scott Gillis, with hiding the deteriorating financial condition of the company, while at the same time raising over $350 million from investors.

The SEC alleges that 1,500 investors nationwide were defrauded into believing they were making investments into health care, education, and transportation , when in reality some of the money from new investors was being used to pay earlier investors, a classic Ponzi scheme maneuver.

The SEC alleges that:

  • From January 2014 to January 2016, Aequitas raised money from investors by issuing promissory notes with high rates of return typically ranging from 8.5 to 10 percent.
  • While Aequitas did use some investor money to acquire trade receivables in health care, education, transportation, and other consumer credit sectors, the vast majority was concentrated in student loan receivables of for-profit education provider Corinthian Colleges.  Corinthian defaulted on its recourse obligations to Aequitas in mid-2014, which significantly exacerbated the firm’s already severe cash flow problems.
  • The executives continued to draw their lucrative salaries, use a private jet, and attend posh dinner and golf outings, all at the expense of investors.  They used the outings to raise more money from investors.  Jesenik, Oliver, and Gillis took home at least $2.5 million in combined salaries during this period.
  • By November 2015, Aequitas could no longer meet scheduled redemptions.  Last month, the firm dismissed two-thirds of its employees and hired a chief restructuring officer.

Affiliates Aequitas Commercial Finance LLC, Aequitas Capital Management Inc., and Aequitas Investment Management LLC, were also implicated by the SEC.

If you have losses on Aequitas related investments, you may be able to recover damages. Call to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 


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