SEC Files Court Order to Halt Advisor’s Alleged Offering Fraud

Posted on August 26th, 2021 at 12:07 PM
SEC Files Court Order to Halt Advisor’s Alleged Offering Fraud

From the Desk of Jim Eccleston at Eccleston Law:

The Securities and Exchange Commission (SEC) has filed an emergency action against a New York-based advisor, Martin Ruiz, as well as two entities he controls, Bain Wealth Management and RAM Fund. After filing the complaint in the U.S. District Court for the Southern District of New York, the SEC attained a temporary restraining order (TRO) and asset freeze against Ruis, Carter Bain and RAM. 

Ruiz allegedly persuaded at least 56 investors, including several elderly clients, to invest nearly $10.6 million in RAM by fraudulently claiming that the funds would be used to purchase real estate and issue commercial loans, according the complaint. However, Ruiz misappropriated a majority of the investors’ money to fund his residences in Manhattan and Santa Fe, pay for millions of dollars in credit card bills, and cover student loan payments. Ruiz allegedly also concealed the fraud by making Ponzi-like payments and designing fraudulent valuations to provide to clients.  The SEC seeks additional remedies including permanent injunctions, disgorgement of ill-received gains with prejudgment interest as well as civil penalties against Carter Bain, RAM, and Ruiz. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters. 

 

Tags: eccelston, sec, fraud, eccleston law

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