RIA Jailed for $8 Million Fraud

By Chris Glynn


A New York registered investment advisor received a six-year prison sentence for defrauding clientele of $8 million, according to a Department of Justice press release.


Martin Ruiz, 46, admitted to a New York federal court last November of swindling “elderly” clientele of $10 million with his RAM Fund, according to the August 2021 complaint with the SEC.   


Ruiz registered with the SEC in 2004 as owner of Carter Bain Wealth Management, headquartered in Deming, N.M.


The DOJ said Ruiz “misappropriated” investor money from 56 people invested with CBWM to finance his RAM Fund, but he then used the ill-gotten client money to support his “lavish lifestyle,” according to the SEC.


In addition to purchasing a $245,000 home in New Mexico, Ruiz rented $300,000 in apartment space and paid off $3 million on his credit card, the SEC alleged. The DOJ noted Ruiz had a total cash withdrawal of $700,000.


“Ruiz concealed misappropriation by making a Ponzi-like payment” to his initial investor base, while making “false valuation concerning RAM," the SEC claimed.  


The SEC interviewed Ruiz in 2021 in which he made a “demonstrably false” statement about his running of RAM Fund, including his claim the RAM Fund had been used to acquire real estate.


A phone call placed to the DOJ in New York was nor returned. Bill Byford, vice president of CBWW in New Mexico, did not respond to a request for comment.