Securities Fraud Investigation – Financial Advisor Ralph Savoie
The White Law Group continues to investigate potential claims involving Ralph Savoie and the liability that his employer may have for failing to properly supervise him.
According to the U.S. District Attorney’s Office in Baton Rouge, Louisiana financial advisor Ralph Savoie, pleaded guilty in federal court March 26 to allegedly stealing up to $1.5 million from clients. Savoie allegedly used investors’ money on personal expenses, including jewelry and hotels, and to pay off previous clients instead of on the promised investment opportunities.
Savoie allegedly began his scheme in 2013, telling his clients that he would invest their money in securities and insurance. Instead, Savoie reportedly spent clients’ money on jewelry, hotels, restaurants, personal credit card bills, car payments and rent.
He also reportedly used clients’ money on a high risk real estate venture and to pay off clients who had previously invested their money with him in a Ponzi-like scheme, according to federal court documents.
After a client confronted Savoie about his investment in 2016, the scheme purportedly came to a crashing halt. According to prosecutors, Savoie admitted to the client that what he did with his money was illegal.
According to his FINRA BrokerCheck report, while allegedly perpetrating the scheme, Savoie was registered with Cambridge Investment Research Inc., in Metairie, LA from July 2013 until August 2015 when he was discharged. Prior to that, he was associated with ING Financial Partners in Baton Rouge from March 2007 through July 2013.
FINRA reportedly barred Savoie in September 2015 for refusing to respond to FINRA requests for information and documents during the course of an investigation into allegations that Savoie “misappropriated more than $665,000 from at least one member firm customer,” according to his broker report.
The US attorney’s office states that Savoie, 70, faces a significant prison term as well as fines, forfeitures and restitution orders following his conviction of wire fraud.According to court filings, a sentencing date has not yet been scheduled for Savoie.
How to Recover Investment Losses
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If it can be determined that the broker dealer failed to properly supervise their agent, the firm can be held responsible for any losses in a FINRA arbitration claim.
If you suffered losses investing with Ralph W. Savoie, The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information, please visit our website, www.whitesecuritieslaw.com.