The SEC has obtained a court order to stop Santa Fe, New Mexico financial advisor Martin Adrian Ruiz’s alleged ongoing offering fraud. According to the SEC complaint, Ruiz induced at least 56 investors to invest $10.6 million in an entity he owns, RAM Fund, LP (“RAM”), through false claims. Ruiz allegedly misappropriated approximately $9 million of the investment for his personal advancement.

Ruiz is the president and sole owner of Carter Bain Wealth Management, LLC (“CBWM”), and he is a registered investment advisor in New Mexico and Texas. Ruiz is also the sole general partner of RAM, a limited partnership in Las Vegas, Nevada. RAM is not registered with the SEC. Ruiz, RAM, and CBWM are named as defendants in the SEC complaint filed on July 29, 2021.

According to the SEC complaint, Ruiz utilized CBWM to target primarily elderly clients and convince them to invest in RAM. Ruiz allegedly raised at least $10.6 million for RAM from at least 56 investors. Many of the investors reside in the same small community where Ruiz was raised. Ruiz is alleged to have represented the RAM investments as being used for investment purposes, such as acquiring real estate and commercial loans. Instead, Ruiz allegedly misappropriated the vast majority of investor funds.

The SEC reports that Ruiz transferred approximately $9.2 million to several companies he controls, where the funds were then distributed in a waterfall fashion to bank accounts benefitting Ruiz. The benefits, according to the SEC, include (1) over $3 million in credit card payments, (2) $1.5 million in cash, (3) $1.3 million to Mister Farms, (4) $300,000 for his Manhattan residence, and (5) $157,000 for school expenses and student loan payments.

In response to the reported allegations, the SEC requested an injunction to permanently restrain Ruiz from participating in the issuance, purchase, offer, or sale of any security. Ruiz was also requested to repay all gains from the violations alleged by the SEC with additional prejudgment interest.