Alvin “Mick” McDonald Ruis Jr., a San Diego businessman once known for training a Kentucky Derby contender, has been indicted on federal charges accusing him of scheming to defraud the U.S. Navy out of scaffolding contracts worth millions of dollars.
Federal prosecutors in San Diego indicted Ruis on federal charges tied to alleged efforts to defraud the U.S. Navy in connection with construction-related contracts, according to the San Diego Union-Tribune.
Navy Contract Allegations
The case centers on alleged efforts involving Navy scaffolding contracts, according to the newspaper's reporting.
The first alleged scheme targeted NAVSEA's Southwest Regional Maintenance Center in San Diego and involved a contract with a ceiling of $17.6 million, the article notes. Prosecutors allege the scheme involved intermingling two company names — Vertical Horizon Scaffold and Vertical Horizon Marine — to confuse contracting personnel. Vertical Horizon Scaffold is described as a small business based in Santee owned by Huang, while Vertical Horizon Marine is allegedly majority-owned by Ruis. Government personnel awarded the contract to Vertical Horizon Marine in 2021, but that company was allegedly ineligible as a small business for the contract, the report states.
The second alleged scheme targeted NAVSEA's Southeast Regional Maintenance Center in Florida and involved a contract set aside for small businesses worth up to $7 million.
Ruis's Ties to American Scaffold
Ruis worked at American Scaffold and later became its sole owner, according to Flathead Beacon.
Ruis built American Scaffold into a major operation. As the sole owner, he grew the company into one of the largest scaffolding operations in the United States, according to Flathead Beacon, which described it as the largest scaffolding provider for the U.S. Navy at the time, with 250 employees spread across five states.
Armada's parent company and Amscaff said they had no knowledge of any wrongdoing raised in the indictment or wrongdoing by the three defendants, per the newspaper's report. Ralph Amezcua said Ruis, Huang and Diehl had not been employed by Armada, Amscaff or affiliated companies for many years, and the report adds that American Scaffold continues to provide services to the U.S. government in compliance with federal acquisition rules.
Defense Attorneys Push Back on Timing
Attorney Jan Ronis said Ruis had only just received a copy of the indictment and entered a not-guilty plea, the Union-Tribune reported. Attorney David Wilson, representing Huang, said he and his client joined the response given by Ronis.
Federal set-aside rules generally require a contractor to qualify as a small business under the size standard tied to the contract's assigned NAICS code, according to federal acquisition regulations. Separate guidance from the U.S. Small Business Administration notes that such set-asides are based in part on the value and quantity of goods or services the government seeks to purchase.
From the Racetrack to Federal Court
Before scaffolding contracts drew federal scrutiny, Ruis built a name for himself in horse racing. He sold his construction company for $2.5 million in 2003 and decided to get into horse racing, buying 50 horses that were bred and trained on his own farm, according to Flathead Beacon's earlier profile. Five years later, he was drawn back into the scaffolding business and returned to work at American Scaffold.
Ruis is described in the Union-Tribune's reporting as a racehorse owner, breeder and trainer who trained Bolt d'Oro for the 2018 Kentucky Derby.
