The Securities and Exchange Commission is suing the Lake Oswego financial company, Aequitas Capital.
The SEC claims Aequitas executives were running a $350 million Ponzi scheme.
The SEC said Aequitas defrauded more than 1,500 investors by telling them they were investing in education, health care and transportation businesses, while in fact their money was being used to keep the firm running.
Chief executive Bob Jesenik and others have been removed from the company. Meanwhile the SEC is asking a judge to appoint a receiver to take control of Aequitas.
In a written statement, Jesenik said the SEC has rushed to judgement and is making sweeping allegations without the benefit of a thorough investigation.