WBRZ recently reported that a Louisiana man was sentenced to 14 years after he was found guilty of defrauding investors out of up to $1.5 million.
WBRZ originally reported this story on December 26, 2017. At the time of the original report, Ralph Savoie had defrauded more than $150,000 from investors by falsely portraying himself as a “reputable and trustworthy financial professional.” Savoie advised investors that he was associated with an Iowa-based brokerage firm, Cambridge Investment Research Inc. However, Savoie was not associated with any such brokerage firm.
Savoie has since pleaded guilty to the charges and has been sentenced to 14 years in prison. In exchange for his guilty plea, Savoie acknowledges that he defrauded investors out of close to $1.5 million, a much higher amount than originally reported. In addition to his prison sentence the court has ordered Savoie to pay $1.1 million in restitution.
What should you do before you invest?
According to the U.S. Securities and Exchange Commission,securities laws require brokers, investment advisers, and their firms to be licensed or registered, and to make important information public. Much of the information can be found online. This information not only includes whether the agent or firm exists but also provides investors with agent disciplinary reports if applicable. Although the information is public, the duty to ascertain that information is solely on the individual investor. Therefore, before any investor invests he or she should research the broker and/or his firm.
What should you do if you’ve already invested and you suspect fraud?
Highly suspicious facts and circumstances surrounding a transaction are proper considerations in determining whether fraud has been committed see Lomont v. Bennett. Louisiana Civil Code Article 1953 defines fraud as a misrepresentation or suppression of the truth made with the intention either to obtain an unjust advantage for one party or to cause a loss or inconvenience to the other. Fraud is never presumed and it is the victim’s burden to prove that fraudulent activity occurred. If you are the victim of activity you believe to be fraudulent call the Whaley Law Firm Today. The firm’s attorneys have experience representing persons in proceedings to remedy their financial losses.
Source:
http://www.wbrz.com/news/louisiana-man-gets-14-years-for-defrauding-investors
http://www.wbrz.com/news/investment-adviser-charged-with-defrauding-clients
https://www.sec.gov/reportspubs/investor-publications/investor-brokershtm.html
Lomont v. Bennett, 172 So.3d 620, (La. 2015).
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