FINRA Bars Ernest Romer III from Securities Industry

According to reports, on August 16, 2017, Michigan’s Department of Licensing and Regulatory Affairs (LARA) issued multiple orders against former advisor Ernest Romer III for allegations of fraudulent conduct.

LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL) also issued a Notice and Order to Cease and Desist and a Notice of Intent to Revoke the Securities Agent Registration of Ernest J. Romer III, of Shelby Township, MI.

According to CSCL, they received multiple consumer complaints from several of Romer’s customers alleging that they had provided him with funds to invest on their behalf, but that he stopped taking their calls, and failed to account for their funds. CSCL investigators confirmed deposits of customer funds into bank accounts controlled by Romer. The investigation led CSCL to issue the Notice and Order to Cease and Desist, and the Notice of Intent to Revoke Securities Agent Registration.

“The Michigan Uniform Securities Act prohibits securities agents from liquidating customers’ securities and then using the proceeds for personal use,” said CSCL Director Julia Dale in a press release. “Our bureau will continue to take strong regulatory actions to protect the public.

The investments involved in the customer complaints are Corecap Solutions and P & R Capital, according to Romer’s FINRA BrokerCheck Report.

CSCL alleges Romer engaged in an act, practice, or course of business that operated as a fraud on others in connection with the offer or sale of securities; being subject to an order by the Financial Industry Regulatory Authority (“FINRA”); and engaging in dishonest and unethical practices in the securities industry.

According to the Notice and Order to Cease and Desist and the Notice of Intent to Revoke Securities Agent Registration, CSCL intends to impose combined fines of $1,500,000 against Romer.

According to Romer’s FINRA BrokerCheck Report, Romer has twenty-two disclosure events listed. He was registered with Corecap Investments, Inc. in Sterling Heights, MI from October 2012 until January 2017 when he was discharged for “Failure to report outside business activity and violations of firm policies relating to transactions with clients.” FINRA permanently barred Romer from the securities industry in July 2017 after he failed to respond to a request for information in response to allegations.

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This information, which is publicly available, has been provided by The White Law Group.

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