SEC bars adviser already sentenced to 6 years in prison

SEC bars adviser already sentenced to 6 years in prison
Martin A. Ruiz took $8 million of client money and spent the vast majority of the funds on personal expenses.
NOV 11, 2022

The Securities and Exchange Commission said Thursday that it had barred one-time financial adviser Martin A. Ruiz, who was sentenced in June to six years in prison for his role in a scheme to defraud his investment advisory clients out of their retirement savings that involved private, limited partnerships.

Ruiz had been registered with Carter Bain Wealth Management in Las Cruces, New Mexico, from 2004 to 2021, according to his Investment Adviser Public Disclosure profile on record with the SEC. According to the firm's most recent Form ADV, it had $61.6 million in client assets and 488 client accounts.

A call to Carter Bain Wealth Management Friday morning could not be completed.

As part of his settlement with the SEC, Ruiz was ordered to pay client $10.9 million in restitution.

According to the SEC, from 2011 to 2021, Ruiz solicited funds from investors, and in those solicitations "made false statements about the true nature of where and how investments would be made."

The investments Ruiz solicited "were securities in the form of limited partnerships in a fund that [he] owned and solely managed," according to the SEC.

"While ostensibly acting in his fiduciary capacity as their investment adviser, Ruiz instead induced more than a dozen such clients to invest more than $10 million in an investment fund called RAM Fund through the purchase of limited partnership interests," according to a statement from the Department of Justice. "Ruiz did not disclose to those clients that [he] controlled RAM Fund and that he planned to misappropriate their funds."  

He took $8 million of client money and "spent the vast majority of the funds on personal expenses, including the purchase of a home, rent payments on several apartments, and the payment of his personal credit card bills," according to the Department of Justice.

Latest News

What advisors need to know about SECURE 2.0’s impact on retirement income planning
What advisors need to know about SECURE 2.0’s impact on retirement income planning

Catch-up contributions, required minimum distributions, and 529 plans are just some of the areas the Biden-ratified legislation touches.

EToro to tokenize US stocks on Ethereum network for 24/7 trading
EToro to tokenize US stocks on Ethereum network for 24/7 trading

Following a similar move by Robinhood, the online investing platform said it will also offer 24/5 trading initially with a menu of 100 US-listed stocks and ETFs.

GTCR to acquire FMG Suite, expanding its wealth tech portfolio
GTCR to acquire FMG Suite, expanding its wealth tech portfolio

The private equity giant will support the advisor tech marketing firm in boosting its AI capabilities and scaling its enterprise relationships.

$29B Lido Advisors expands in Utah with Olympus Wealth Management
$29B Lido Advisors expands in Utah with Olympus Wealth Management

The privately backed RIA's newest partner firm brings $850 million in assets while giving it a new foothold in the Salt Lake City region.

Annuities hit new $223B high in H1 2025, LIMRA says
Annuities hit new $223B high in H1 2025, LIMRA says

The latest preliminary data show $117 billion in second-quarter sales, but hints of a slowdown are emerging.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.