Former Cambridge Advisor Ralph Savoie Faces Prison Time for $1 Million Fraud

According to Financial Planning online, former Cambridge Investment Research broker Ralph Savoie faces prison time for his role in a three-month scheme in which he allegedly used client money toward his rent, credit card bills and jewelry purchases. Mr. Savoie pleaded guilty to wire fraud and could possible forfeiture $1.05 million to clients. He promised investors that he could guarantee 11.4% return on their $50,000 investment, but never invested the money. Savoie, 70, pleaded guilty to one count of wire fraud on March 26th in Baton Rouge, LA, in federal court. He was charged by authorities in December with two counts of wire fraud and one count of identity theft. He was fired by Cambridge in August 2015 and the Financial Industry Regulatory Authority barred him from the industry in September of that same year.
According to online, FINRA records, Mr. Savoie was previously registered with The Equitable Life Assurance Society of the U.S., Paul Revere Equity Sales, FSC Securities, The Minnesota Mutual Life Insurance Company, Integrated Resources Equity Corp, Securian Financial Services, Metropolitan Life Insurance Company, MetLife Securities, Park Avenue Securities, ING Financial Partners, and Cambridge Investment Research in Metairie, Louisiana from July 2013 until September 2015. He has six customer disputes against him, three of which are pending, and one regulatory matter. Savoie was accused of selling unsuitable, illiquid, expensive private placements in a scheme, breach of contract, violations of securities laws, violations of Louisiana securities law, common law fraud, breach of fiduciary duty, gross negligence, and committing fraud, among other things. These are all against securities laws and internal firm rules, and Cambridge can be liable for losses. The firm had a duty to supervise him while he was registered there. He has been barred from the industry, permanently.