Former Finance Chief Accused of Placing Oregon Investment Company Under ‘Tremendous Strain”

After chief financial officer Jefry Baker agreed to leave multi-million-dollar investment company, Sortis Capital, he ‘generated a flurry’ of calls and emails to clients, calling on them to redeem their investments.

This led to requests ‘for tens of millions of dollars’ in redemption requests from clients, placing Sortis under ‘tremendous strain,’ according to company attorneys.

The incident occurred shortly after Baker agreed to leave Sortis at about the time a $85 million deal to acquire the Ace Group International hotel chain collapsed.

These are the allegations made by Sortis Capital in papers to the Multnomah County Circuit Court suing its former chief financial officer for violating a separation agreement he signed when leaving the company in April, and marks ongoing legal battles connected to Paul Brenneke, the founder of Sortis Capital.

According to the lawsuit, Brenneke met with Baker and other Sortis partners, and ‘Baker agreed he needed to leave Sortis.’ Brenneke says Sortis agreed to make the former financial chief ‘a separation offer.’

Baker Breached Agreement ‘Almost as Soon as the Ink Dried’

Sortis attorneys claim that after signing the agreement on April 8, Baker materially breached the separation agreement ‘almost as soon as the ink had dried.’

Baker was financial chief at Sortis from early 2022 until his departure in April 2024, since when he has inappropriately solicited Sortis investors, according to the lawsuit. It is also alleged that Baker disparaged Sortis and disclosed confidential information in violating separation and company operating agreements.

The eight-page complaint filed in court alleges that Baker was planning to leave Sortis and start a competing fund in late 2023, urging investors to cash out and invest in his new estate investment company, Black Butte Capital.

Sortis Wants Baker to Stop Soliciting its Investors

Sortis is seeking a court order to stop Baker from soliciting its investors, stop disparaging the company, and return all Sortis information. Baker has ‘categorically’ denied all allegations and will soon be filing a full legal response, according to his attorneys.

Sortis Capital manages $300 million in assets for its 1,200 investors.