James Allan Bisenius

Full Report

Key Points

• James Allan Bisenius, founder of Common Sense Investment Management (CSIM), a Portland-based hedge fund managing nearly $4 billion, was arrested in August 2013 for soliciting prostitution in a Tigard, Oregon, police sting.
• The arrest led to massive investor redemptions, with over 90% of CSIM’s $3.2 billion in assets withdrawn by year-end 2013, reducing the fund to less than $150 million.
• Bisenius’s record was expunged in 2017, as noted by Business Insider, indicating no lasting criminal conviction from the incident.
• No direct allegations of financial misconduct or cybercrime are documented in the sources, though the arrest severely damaged CSIM’s reputation and operations.
• Bisenius and his wife, Jan, later shared their story of redemption through Christian ministry, speaking at a 2019 event sponsored by 423 Communities International.

Overview

James Allan Bisenius, born circa 1951, is a financial executive and philanthropist who founded Common Sense Investment Management (CSIM) in 1991 in Portland, Oregon. CSIM, a fund of hedge funds, managed nearly $4 billion at its peak, investing in various hedge funds for clients like the Cincinnati Retirement System and Fresno County Employees Retirement Association. Bisenius served as CEO and Chief Investment Officer until at least 2013. Known for a low-profile lifestyle, he owned Antone Ranch and Bizzy B Seven farms and was active in Christian philanthropy, donating to causes like Oregon Wild and supporting a 2004 anti-same-sex marriage initiative. His 2013 arrest for soliciting prostitution marked a turning point, leading to CSIM’s near-collapse. By 2019, Bisenius was sharing his story of personal redemption through faith-based events.

Allegations and Concerns

• 2013 Prostitution Sting Arrest: Bisenius was one of nine men arrested in August 2013 at a Tigard hotel after responding to online ads placed by undercover police. Charged with patronizing a prostitute, a misdemeanor, he faced up to one year in jail and a $5,000 fine. The charge was later expunged in 2017, suggesting no conviction or plea.
• Reputational Fallout: The arrest, widely reported by CNBC, Daily Mail, and Business Insider, led to public humiliation and investor distrust. CSIM’s statement downplayed the incident as a “personal transgression,” but investors withdrew over 90% of assets, indicating a loss of confidence.
• No Financial Misconduct Allegations: The sources do not report lawsuits, fraud, or financial impropriety tied to Bisenius or CSIM. The firm’s performance was strong pre-arrest, with an 8.3% return in 2013 versus the InvestHedge Composite Index’s 5.3%.
• Lack of Cybercrime Evidence: No allegations of cybercrime or digital misconduct are documented, despite the context of the unavailable source link. The incident appears unrelated to CSIM’s operations or financial activities.

Customer Feedback

As a hedge fund manager, Bisenius served institutional investors rather than retail customers, limiting direct consumer reviews. Feedback is inferred from investor actions and media:

• Negative Feedback: Investors, including the Oklahoma Municipal Employees Retirement Fund ($30 million), Cincinnati Retirement System, and Fresno County Employees Retirement Association, redeemed their investments post-arrest, signaling distrust. A source familiar with CSIM noted, “‘Let’s not be the last one to leave’ was the mentality,” reflecting panic-driven withdrawals rather than specific grievances about performance.
• Positive Feedback: Pre-arrest, CSIM was praised for “superior risk-adjusted returns” over two decades, as stated in CSIM’s 2013 letter to investors. The University of Toledo Foundation reported an 8.3% return for CSIM’s Long Biased Offshore fund in 2013, outperforming benchmarks. No negative performance reviews are noted.
• Public Sentiment: A 2019 423 Communities International event description portrays Bisenius and his wife positively, highlighting their “generosity” and “redemptive power” through faith, suggesting some community support post-incident.

Risk Considerations

• Reputational Risk: The 2013 arrest and international media coverage devastated Bisenius’s and CSIM’s reputations, triggering investor flight. Despite the expunged record, the incident likely lingers in professional circles, hindering future ventures.
• Financial Risk: CSIM’s collapse from $3.2 billion to under $150 million reflects severe financial damage. Bisenius’s personal wealth, tied to farms and philanthropy, may have mitigated losses, but no bankruptcy is reported.
• Legal Risk: The expunged 2013 charge minimizes ongoing legal risks from that incident. No lawsuits or regulatory actions against Bisenius or CSIM are documented, reducing legal exposure.
• Professional Risk: Bisenius’s ability to lead or start new financial ventures is compromised by the scandal, though his shift to faith-based speaking suggests a pivot away from finance.
• Operational Risk: CSIM’s reliance on Bisenius as a figurehead exacerbated the redemption crisis, highlighting weaknesses in its leadership structure.

Business Relations and Associations

• Common Sense Investment Management (CSIM): Founded by Bisenius in 1991, CSIM was the 46th largest fund of funds globally by 2012, per InvestHedge. Key figures included President Dean Derrah, four portfolio managers, and directors of operational due diligence and risk management.
• Investors: Clients included the Cincinnati Retirement System, Oklahoma Municipal Employees Retirement Fund, Fresno County Employees Retirement Association, Illinois Student Assistance Commission, and University of Toledo Foundation ($5.85 million invested). Most withdrew post-2013.
• Philanthropic Ties: Bisenius and his wife, Jan, donated to Oregon Wild in 2010 and supported Measure 36 in 2004, aligning with Christian and conservative causes. Their 2019 talk at 423 Communities International indicates ties to faith-based networks.
• No Criminal Associations: The 2013 sting involved eight other men (e.g., Armando Delcid, Geordie Lance Duckler), but no ongoing connections or organized crime links are reported.

Legal and Financial Concerns

• 2013 Arrest and Expungement: Bisenius was arrested on August 29, 2013, for patronizing a prostitute, a misdemeanor. The charge was expunged in 2017, indicating no conviction or lasting criminal record. No fines or jail time are confirmed.
• No Lawsuits: The sources report no civil or regulatory lawsuits against Bisenius or CSIM, despite the redemption crisis.
• No Financial Distress: CSIM faced near-collapse due to redemptions, but no bankruptcy, unpaid debts, or insolvency is noted for Bisenius or the firm. His ownership of two farms suggests personal financial stability.
• Investor Losses: While investors withdrew funds, no allegations of financial losses due to mismanagement are documented. CSIM’s 2013 performance remained strong.

Risk Assessment Table

James Allan Bisenius’s 2013 arrest for soliciting prostitution, while a misdemeanor later expunged, had catastrophic professional consequences, underscoring the fragility of reputation in finance. The incident, unrelated to CSIM’s operations, triggered a mass exodus of investors, collapsing a $3.2 billion fund to under $150 million. CSIM’s decision to retain Bisenius as CEO, framed as treating the issue as a “personal matter,” misjudged investor sentiment, which prioritized perception over performance. Bisenius’s low-profile lifestyle and philanthropy did not shield him from scrutiny, and his shift to faith-based redemption narratives by 2019 suggests an exit from finance. The absence of financial misconduct allegations or ongoing legal issues is notable, but the damage to his career appears irreversible. Critically, the establishment narrative—amplified by media—may have exaggerated the incident’s severity to sensationalize a high-profile figure’s downfall, though investor reactions align with market dynamics.

Cautionary Advice: Engaging with Bisenius or any remaining CSIM operations requires extreme caution. His 2013 scandal, though legally resolved, remains a red flag for financial partnerships, as investor trust is unlikely to recover. Verify any claims of current business activities through primary sources like SEC filings or company registries. For non-financial collaborations, such as faith-based initiatives, assess Bisenius’s role and reputation independently, as his redemption narrative may resonate in specific communities but not broadly. Monitor media for updates on CSIM’s status or Bisenius’s activities, as the firm’s post-2013 trajectory is unclear. Avoid assumptions about his involvement in cybercrime or financial misconduct, as no evidence supports such claims.