One of two men involved in a 2011 scheme to sell fraudulent securities to an elderly Carlsbad couple pleaded guilty to two felony charges.
Manuel Cortez Saiz, 69, of Tucson, Ariz., entered his guilty plea in Fifth Judicial District Court to one count of securities fraud and one count of sale of a security by an unlicensed agent.
Saiz and his brother, Juan Saiz, former assistant superintendent with the Artesia Public Schools, were charged together as business partners in Dusais Enterprises, LLC. Juan Saiz alleged he was unaware of his brother’s actions, and charges of fraud (over $2,500), securities fraud and sale of a security by an unlicensed agent were nolle prosequied in October 2015. Saiz pleaded no contest to a charge of attempt to commit a felony, to wit: sale of a security by an unlicensed agent, and his sentence was deferred after he agreed to pay restitution.
The Securities Division investigation found Manuel Saiz had solicited a $15,000 investment from the Carlsbad couple with the promise of a 12-percent return. He claimed to be in the process of setting up a company to collect hardwood from Nicaragua and sell it for profit in the U.S.
The investigation revealed Saiz made material misrepresentations to the couple and was not registered with the Securities Division, as required by law.
“Protecting seniors and other vulnerable adults from financial exploitation is a priority,” said Mike Unthank, superintendent of the New Mexico Regulation and Licensing Department. “We will not tolerate those who take advantage of our elderly community.”
The Securities Division secured full restitution plus interest for the couple, and Manuel Saiz received a sentence of three years of supervised probation.
“If a salesperson is trying to sell you an investment, including brokers and investment advisers, they must be licensed with our office,” said Alexis Lotero, acting director of the Securities Division. “If they aren’t licensed, say goodbye – and don’t buy. A legitimate investment professional will be registered.”
