EC Contemplating Barring ERNEST ROMER
The Securities and Exchange Commissions issued an Order February 22, 2019 commencing administrative proceedings to determine whether to bar securities broker Ernest Romer III (CRD#: 2311741, Shelby Township, Michigan). Evidently, SEC initiated these proceedings due to Romer’s criminal conviction on 13 counts of embezzlement. Here’s more on the alarming allegations against Romer:
Ernest Romer Facing SEC Bar For Embezzlement
Evidently, in 2018, Ernest Romer chose not to contest 13 counts of felony embezzlement. Allegedly, those embezzlement counts to which Romer pleaded no contest related to him being entrusted with a substantial amount of assets that he somehow misappropriated. Apparently, in December 2018, Romer was sentenced to serve anywhere from 7 to 20 years in prison. The Court also required that he pay $2,650,000.00 in restitution to those investors he embezzled from.
SEC later issued an Order to Show Cause dated August 29, 2019 confirming that Ernest Romer has been unresponsive. The Commission stated that Romer was supposed to file an answer to the February 22, 2019 Order but failed to do so. SEC indicated that it will determine all allegations against Romer to be true, and which sanctions to impose, if he continues to fail to respond to SEC.
FINRA, Michigan Securities Regulator Sanction Romer
Evidently, FINRA barred Ernest Romer on July 17, 2017 for failure to respond to a FINRA Request for Information. Among other things, FINRA seemingly asked Romer to explain the circumstances of his departure from CoreCap Investments Inc. Apparently, CoreCap disaffiliated with Romer because of his alleged undisclosed outside business activities and failure to comply with CoreCap policy on trading in customer accounts. Also, between April 29, 2019 and June 19, 2019, FINRA sanctioned Romer twice more for failing to comply with a FINRA Arbitration Award or a settlement agreement.
Moreover, on August 8, 2017, the State of Michigan issued Ernest Romer a $1,000,000.00 fine and ordered him to cease and desist from violating Michigan Securities Act. The securities broker allegedly asked three customers to liquidate their securities so Romer could invest the proceeds on their behalf. However, Romer supposedly placed their assets in his account for his own use and benefit. Allegedly, Romer violated Michigan Securities Act for misusing the customer’s funds.
CoreCap Investors File Disputes Over Ernest Romer’s Purported Theft Of Assets
Evidently, a customer of CoreCap Investments Inc. filed FINRA Arbitration #: 18-00198 against Ernest Romer on January 17, 2018. The Statement of Claim alleged, among other things, breach of fiduciary duty, misrepresentation, and violation of Michigan Securities Act. Eventually, on March 19, 2019, the Arbitrator found Romer liable and granted the customer nearly $700,000 in compensatory damages.
Also, between March 1, 2018 and July 16, 2018, at least 5 CoreCap clients filed disputes about Romer. Mainly, those clients alleged that Romer stole their funds. Supposedly, Romer requested assets from the customers to invest on their behalf. A couple of those customers claimed they provided Romer with funds which went to his own company, P&R Capital. The customers contended that Romer did not invest the funds according to plan. Evidently, CoreCap reached settlements with the customers, paying more than $586,000.00 in damages.
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