Rio Rancho Businessman Indicted in Financial Scheme

A Sandoval County Grand Jury has indicted a Rio Rancho businessman on multiple felony charges for allegedly stealing $125,000 from five investors in a financial scheme.

The grand jury returned a criminal indictment Thursday against Russell J. Dils on 16 felony charges, the New Mexico Regulation and Licensing Department said in a news release. Charges included securities fraud, selling unregistered securities, selling and soliciting to sell unregistered securities without being a licensed broker, and racketeering.

The indictment alleges that Dils stole $125,000 and also fraudulently sold securities to an undercover law enforcement agent.

“Through the efforts of our skilled investigative team and the proactive undercover operation, Mr. Dils’ illegal operation was shut down and the victims of the scheme were identified,” said Daniel Tanaka, Securities Division Director for the State Regulation and Licensing Department.

According to the indictment, Dils, the owner of Southwest Machinery and Equipment, fraudulently sold $125,000 worth of unregistered promissory notes to five separate victims from several different states beginning in November of 2009.

Dils failed to disclose the financial troubles he and his company were facing, according to the indictment.

The Pennsylvania Security Commission issued a cease-and-desist order in 2009, telling Dils to stop offering and selling unregistered securities. Dils has also been cautioned by South Dakota and Oklahoma for offering to sell securities.

The investigation was conducted by Special Agent in Charge Benjamin Baker and members of his staff, with assistance from the U.S. Secret Service Financial Crimes Task Force in Albuquerque. The case is being prosecuted by Special Assistant District Attorney Patrick McNertney.

To learn more about investment fraud, visit www.RedFlagsNM.com.