KCC Precedent Search Options

KCC's Corporate Restructuring Court Documents Search provides access to thousands of historical court documents located on KCC public access websites. Please use the form below to refine and maximize search results.

For information about the data provided, please review the Disclaimer statement.

Disclaimer


Welcome to the Information Website for the Receivership for Aequitas Management, LLC et al.
General Information:
On March 10, 2016, the Securities and Exchange Commission (the “SEC”) filed a Complaint in the U.S. District Court for the District of Oregon against Aequitas Management, LLC , Aequitas Holdings, LLC, Aequitas Commercial Finance, LLC, Aequitas Capital Management, Inc., and Aequitas Investment Management, LLC (collectively “Receivership Defendants”), alleging violations of various federal securities laws. This case is pending before the Honorable Paul Papak, civil case no. 16-00438.

Concurrently, the SEC also filed a Stipulated Motion for Preliminary Injunction and Appointment of a Receiver. The Court appointed Ronald Greenspan of FTI Consulting, Inc. as Receiver of the Receivership Defendants, and their subsidiaries and/or majority-owned affiliates. For more information, please view the Order Appointing Receiver.


Letter from the Receiver dated March 25, 2016: Click here to view the letter.

Important Notice of Receiver’s Intent to Waive Privilege - Files of Sidley Austin and Tonkon Torp: Click here for additional information.

Receiver Ronald F. Greenspan's Report Dated September 14, 2016: Click here to view the September 14th Report and here to view the related Exhibits to the Report.

List of Receivership Entities: Click here to view a list of the affiliated entities.

Civil Court Documents: Please click here to be view the publicly-accessible version of the Court Docket.

This site is intended to provide information to individuals who invested with or in the named defendants.

Important Dates, Deadlines & Documents

April 15, 2016

March 25, 2016

March 16, 2016

March 10, 2016

Parties & Addresses

Court Address

U.S. District Court
Distirct of Oregon, Portland Division
Mark O. Hatfield U.S. Courthouse
1000 S.W. Third Ave.
Portland, OR 97204
https://www.ord.uscourts.gov/


Receiver and Attorneys' Addresses

Ronald F. Greenspan
FTI Consulting, Inc.
633 W. 5th Street, Suite 1600
Los Angeles, CA 90071-2027
T: (213) 689-1200
F: (213) 689-1220
http://www.fticonsulting.com


Ivan B. Knauer, Esq.
Pepper Hamilton, LLP
600 14th Street, NW, Suite 500
Washington, DC 20005
T: (202) 220-1200
F: (202) 220 -1665
http://www.pepperlaw.com



Brian M. Nichilo, Esq.
Pepper Hamilton, LLP
3000 Two Logan Square
18th and Arch Streets
Philadelphia, PA 19103
T: (215) 981-4000
F: (215) 981-4750
http://www.pepperlaw.com


Troy D. Greenfield, Esq.
Joel A. Parker, Esq.
Jeffrey S. Eden, Esq.
Schwabe, Williamson & Wyatt, P.C.
1211 SW 5th Ave., Suite 1900
Pacwest Center
Portland, OR 97204
T: (503) 222- 9981
F: (503) 796-2900
http://www.schwabe.com

Frequently Asked Questions


What is a “receivership”?

When will I receive any of my investment back?

How much of my investment will I receive back?

What is the best way to get in touch with the Receiver if I have a question?

What do I need to do next?

How do I file a claim for my investment?

Is quarterly interest added to the total claim each quarter?

Are personal assets of Jesenik, Oliver and Gillis such as homes, autos, etc. included in the liquidation?

Do you advise that I hire an attorney?

When will you know whether or not the Debtor is going to file bankruptcy?

The Order states what the court requires any person or entity in control of any assets to file with the Court. Do I need to file with the Court?

Jesenik, Oliver and Gillis have been named in the Complaint but what about other individuals within the firm?

I have a note investment with Aequitas and am to get monthly payments of interest until maturity. Is my investment secure?

When will K-1s be available for 2015? Should I file using an estimate or file an extension?

Will FTI pursue action against Deloitte and others named in the class action?

I do not see the ACF Private Note listed on Exhibit A as part of the Receivership entities. Why?

Why am I seeing court filings from the Receiver outside of Oregon?

Why have the companies settled the SEC enforcement action?

What is a “receivership”?

When a judicial enforcement action is brought by the U.S. Securities and Exchange Commission (the “SEC”) to enjoin conduct prohibited under various securities laws, the SEC frequently seeks appointment by the Court of a receiver to take control of the assets of the defendant pending the outcome of the litigation. The Receiver is an officer of, and overseen by, the Court. Accordingly, in this case, the Receiver was appointed by the United States District Court for the District of Oregon and charged with, among other things, marshaling and preserving the assets of the defendant entities pending a determination whether or not Aequitas Management, LLC, Aequitas Holdings, LLC, Aequitas Commercial Finance, Inc., Aequitas Capital Management, Inc., Aequitas Investment Management, LLC and Robert J. Jesenik, Brian A. Oliver, and N. Scott Gillis, and/or other defendants violated any securities law.


When will I receive any of my investment back?

Before the Receiver can make a distribution to Aequitas investors or creditors, the District Court must make a determination of liability (or the parties may stipulate to such) and must authorize the making of distributions from the defendants’ assets. Furthermore, a distribution cannot be made unless and until sufficient assets are available for distribution, reserving for the costs of the administration of the receivership and other contingencies. Finally, a distribution will require the compilation of a roster of reconciled claims and amounts owed to each creditor and investor. The Receiver cannot estimate how long this process will take at this time.


How much of my investment will I receive back?

At this early stage of the case, the Receiver has not yet located and determined the recoverable value of all potential receivership assets or the amount of claims against those assets. The Receiver is diligently investigating the location and value of receivership assets and has retained professionals to assist him in locating and managing those assets.


What is the best way to get in touch with the Receiver if I have a question?

The best way to contact the Receiver is to submit your question, along with your contact information, through the "Submit an Inquiry" tab on this website.


What do I need to do next?

If you have not already received a letter from the Receiver dated March 25th, 2016, please submit your contact information through the "Submit an Inquiry" section of this website to ensure the Receiver has the most current contact information on file. The Receiver will periodically post case updates as well as other important information at this website. We encourage parties in interest to visit this website and check for updates periodically. At some point in the future, you will be required to complete a Claim Form stating the amount owed to you by the defendants. There will be a deadline set by which these forms must be submitted. In due course, the Receiver will post the Claim Form and any deadlines at this website and will provide other notification as directed by the District Court. This information is not yet available.


How do I file a claim for my investment?

(1) The Receiver will be preparing a list of investors and their investments based on the Aequitas books and records. This will be posted to the website and mailed to known investors. If you agree with the amounts you don’t need to do anything--a claim in that amount will be automatically considered.

(2) If you disagree with the schedule prepared by the Receiver, you will have the opportunity to file a different claim. In the next several months a Claim Form will be mailed to all investors (and creditors) and posted on the Receivership website. The claim form, when published, will be very detailed and contain instructions. It will contain separate categories for unpaid principal, pre-Receivership accrued but unpaid interest and post-Receivership accrued interest. As noted above, claimants will only need to submit the claim form if they believe the Receiver’s schedule is incorrect. Please continue to monitor the website www.kccllc.net/aequitasreceivership for updates.


Is quarterly interest added to the total claim each quarter?

Please see the response to the prior question. Information on accrued interest will be collected as part of the claim process. How accrued interest will ultimately be treated will be addressed in the Liquidation Plan, the terms of which will be developed after all information is collected and investigations completed. Investor input on the terms of the Liquidation Plan will be solicited broadly and in any event the Liquidation Plan will require notice and court approval.


Are personal assets of Jesenik, Oliver and Gillis such as homes, autos, etc. included in the liquidation?

No. The Receivership Entity only includes the Corporate Defendants and the Exhibit A entities (attached to the Receivership Order [Docket No. 156]). The SEC has filed suit against the three individual defendants (and the Corporate Defendants) and has said it will be seeking significant damages. During the Investigative phase of the Receivership, we will be investigating whether the Receiver has claims against the individuals.


Do you advise that I hire an attorney?

We cannot and are not giving legal advice, including whether or not to hire an attorney. Further, we do not know any individual’s situation so it might be prudent to have your situation evaluated by your lawyer. There is a “stay” in place pursuant to the Receivership Order which prohibits the filing of any action against the Receivership Entity (and all related parties) but it has a limited exception for actions against unrelated entities on causes of action that differ from what might be brought by the Receiver.


When will you know whether or not the Debtor is going to file bankruptcy?

The Receivership Order requires the Receiver to obtain court approval before filing bankruptcy. The Receivership Entity has retained bankruptcy counsel in case bankruptcy planning needs to be undertaken but currently there is no intention to file bankruptcy for any of the entities.


The Order states what the court requires any person or entity in control of any assets to file with the Court. Do I need to file with the Court?

You do not need to file any documents with the court. Investors are owed money, are creditors of the Receivership Entity and do not have any “assets of the Receivership Entity” (such as money or securities owned by the Receivership Entity). Therefore, they do not need to do anything right now unless they happen to also possess assets of the Receivership. See above for information on claims.


Jesenik, Oliver and Gillis have been named in the Complaint but what about other individuals within the firm?

The SEC has filed the complaint against the three individuals named. We cannot comment in regards to their investigation. The SEC may add or drop names from the complaint as they continue their investigation.


I have a note investment with Aequitas and am to get monthly payments of interest until maturity. Is my investment secure?

The Receiver's mandate is to fairly and effectively marshal and preserve assets of the Receivership Entity for the benefit of investors and creditors, monetize such assets, investigate and prosecute claims which are held by the Receivership Entity, and ensure an orderly distribution of the assets at an appropriate time after review and approval of a Distribution Plan by the Court. At this time, all distributions to investors have been suspended. Due to the complexity of the Aequitas structure with its numerous entities and myriad of financing vehicles, it is not possible at this time to determine what the recovery might be on an individual investment. Although we cannot predict with any certainty the estimated recovery values at this early stage of the process, it is highly likely that your principal will be compromised and one should not expect any distribution for quite some time.


When will K-1s be available for 2015? Should I file using an estimate or file an extension?

K-1s will come later in the year, however we plan to send out estimated gains and losses for 2015 prior to April 15. You can also choose to use last year’s number and indicate on your return that it's an estimate or you can choose to file an extension.


Will FTI pursue action against Deloitte and others named in the class action?

The Receivership will pursue claims on behalf of the Receivership entities after a thorough investigation. However, it is important to recognize that other parties (such as investors directly) may institute a cause of action if they have a claim different than any claim owned by the Receivership and if the defendants are not affiliated with the Receivership. At this time, there are several lawsuits proceeding independent of the Receivership---the SEC is pursuing claims against the three individuals named in its Complaint and a class action complaint has been filed on behalf of investors against certain professionals associated with the securities offerings. Both of these fall outside of the purview of the Receiver.


I do not see the ACF Private Note listed on Exhibit A as part of the Receivership entities. Why?

Aequitas Commercial Finance (ACF) is a receivership entity and is the entity which issued the Private Notes. Thus the entity which is obligated on the Private Notes is part of the Receivership Entity and is covered by the Receivership Order.


Why am I seeing court filings from the Receiver outside of Oregon?

Federal law provides that the Receiver has jurisdiction in every one of the 93 judicial districts but only if he files notice with these districts within 10 days of the receivership. Since the receiver does not know now in which jurisdictions it might be necessary to appear to claim assets, as a precaution the receiver is filing the notice in all federal districts. This is just a required procedural notice and has no effect on the Receivership proceeding in Oregon.

Why have the companies settled the SEC enforcement action?

The Receiver believes that resolving the SEC action is in the best interests of investors. As set forth in the settlement papers, the Receiver, on behalf of the Aequitas-related entities, has committed to continuing to cooperate fully with the SEC staff as the matter progresses.

Note

Kurtzman Carson Consultants LLC ("KCC") maintains this website at the direction of the Receiver of the Receivership Defendants, and their subsidiaries and/or majority-owned affiliates. KCC maintains this website for the public's convenience and, while KCC makes every attempt to ensure the accuracy of the information contained herein, this website is not the website of the United States District Court and does not contain the complete, official record of the District Court. All documents filed with the Court are available for inspection at the United States District Court for the District of Oregon.