| After SEC
Sued Martin Ruiz His Lawyer Asked To
Withdraw Now 72 Months in Criminal Case
By Matthew
Russell Lee, Patreon Maxwell
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SDNY COURTHOUSE,
June 23 – The SEC sued Martin
Ruiz on August 2, 2021 but
asked that the case be sealed.
Later it was unsealed - but
now a hearing on Ruiz' lawyer
withdrawning was held ex
parte.
On April 4, U.S. District
Court for the Southern
District of New York Judge
Lewis J. Liman held a
telephonic proceeding. Inner
City Press covered it, as it
had earlier in the day the US
v. Larry Ray trial over which
Judge Liman also
presided.
Ruiz'
lawyer Erwin Shustak wants to
withdraw.
Judge Liman asked
the SEC "and anyone else on
the line" to hang up, to allow
an ex parte proceeding.
Inner City Press hung up.
Jump cut to June
23, 2022: "MARTIN RUIZ, a
former investment adviser, was
sentenced today to 72 months
in prison by U.S. District
Judge Vernon S.
Broderick. RUIZ pled
guilty on November 12, 2021,
for his role in a scheme to
defraud his investment
advisery clients out of their
retirement
savings.
According to the allegations
in the Complaint, the
Information to which RUIZ pled
guilty, and statements made
during court
proceedings:
From at least in or about
March 2011 through in or about
the present, RUIZ induced
multiple individual investment
advisery clients of Carter
Bain Wealth Management
(“CBWM”), many of whom are
elderly, to retain RUIZ and
CBWM to advise them on how
they should invest their
retirement savings.
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. RUIZ did not
disclose to those clients that
RUIZ controlled RAM Fund and
that he planned to
misappropriate their
funds.
In fact, rather than invest
the funds in legitimate
investment projects and real
estate, as he falsely
represented to clients, RUIZ
misappropriated more than $8
million of client funds from
the RAM Fund, transferred
those funds through a series
of entities RUIZ also
controlled, 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. In so doing, he
violated his fiduciary duty to
act in his clients’ best
interest and avoid
self-dealing. RUIZ also
made multiple false statements
to the U.S. Securities and
Exchange Commission about his
companies and investments in
order to hide his fraudulent
scheme."
The criminal case
is US v. Ruiz, 21-cr
695
(Broderick)
The civil case is
US Securities and Exchange
Commission v. Ruiz, et al.,
21-cv-6622 (Liman)
***
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