2016 onward
Fund raises investor capital
The complaint says the Sortis Income Fund began raising money for lending investments.
On November 4, 2026, Willamette Week reported on a lawsuit filed October 2 in Multnomah County Circuit Court by Stillwater Portfolio and investor Raymond Rodgers. The plaintiffs allege that the Sortis Income Fund and affiliated defendants breached obligations to investors and used fund money for loans to related businesses rather than the real-estate-secured lending strategy they say was represented to investors.
The lawsuit names Paul Brenneke, Sortis Income Fund LLC, Sortis Holdings Inc. and Sortis Fund Manager LLC. Its allegations concern the handling and disclosure of loans to businesses affiliated with the wider Sortis organization, as well as investor payments and management fees. These remain contested civil claims, not judicial findings.
Why it matters
In a private fund, investors depend on offering documents, periodic reports and management disclosures to understand where their capital is deployed. The lawsuit disputes whether those disclosures accurately conveyed certain related-party exposures.
What Sortis says in response
Through attorney Paul Kisslinger, Sortis rejected the allegations in comments reported by Willamette Week. Its response characterized the lawsuit as meritless, said contractual redemption provisions had been used to protect investors against forced asset sales during difficult interest-rate conditions, and indicated it would seek enforcement of an arbitration agreement and pursue counterclaims. Sortis said it disputes the allegations in full.
Reported regulatory scrutiny
The Oregonian/OregonLive subsequently reported that federal and Oregon financial regulators were examining the Sortis Income Fund. The existence of reported investigative activity should not be interpreted as a finding of misconduct. The investigations’ status, scope and outcomes should be checked against the latest official information.
For a complete picture, consult the linked reporting and any subsequently published court filings, official statements or resolutions.