SEC Charges ERNEST JULIUS ROMER III with Alleged Multi-Million Dollar Scam

ERNEST JULIUS ROMER III, a 56 year-old former broker from Shelby Township, Michigan, was registered with CoreCap Investments, Inc. of Sterling Heights, Michigan, from 2012-2017, is facing charges from the SEC that he allegedly defrauded his brokerage clients,  including many elderly and unsophisticated investors, out of more than $2.7 million in an investment scam over several years.

The SEC states that from at least 2014 through 2016, Ernest J. Romer III allegedly convinced at least 30 clients, many of them elderly, to sell securities in their brokerage accounts and move their money to P&R Capital, LLC or CoreCap Solutions, LLC.  According to the SEC, Romer allegedly told the clients that the firms he was moving their money to were firms which he was affiliated with and that their funds would be invested in the stock market. When in fact, the two firms he was misrepresenting to his clients were allegedly Romer’s own personal businesses.  According to the SEC, Romer allegedly never invested the clients’ money in the stock market and instead of investing the money, he used the clients’ money to allegedly trade on his own or his family’s behalf, made Ponzi-like payments to certain investors, and he covered losses for some clients on an investment Romer had recommended.
The SEC is seeking disgorgement of the alleged ill-gotten gains with interest as well as civil penalties.
According to a Macomb County Prosecutor, investigators believe Romer’s transactions were allegedly part of a larger pattern of corrupt financial maneuvers involving a field of investors, with as many as 20 additional victims. Investigators believe there are many more victims out there.  The prosecutor also warned the public to be careful who they trust with their money.
FINRA had barred ERNEST JULIUS ROMER III from acting as a broker or otherwise associating with a broker-dealer firm in April of 2017.  According to FINRA’s BrokerCheck, Romer had been in the securities industry for 23 years. Romer has 47 Disclosures on his report which include customer disputes, regulatory, criminal, judgment/liens, etc., dating back to 1995.
Ernest Romer was listed with 9 firms, the 3 most recent listed below:
0/22/2012 - 01/27/2017  CORECAP INVESTMETNS, INC - STERLING HEIGHTS, MI
07/20/2012 - 10/19/2012  L.M. KOHN & COMPANY - STERLING HEIGHTS, MI
12/07/2005 - 07/23/2012  LEONARD & COMPANY - STERLING HEIGHTS, MI
If you or an elderly family member were victims of the alleged scam by former CORECAP INVESTMETNS, INC of STERLING HEIGHTS, Michigan, broker, ERNEST JULIUS ROMER III, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents our clients nationally before FINRA.  We operate on a contingency fee basis—no fee to you if no recovery.