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Broker, Ernest Romer, Charged By The SEC With Bilking Elderly Retirees For Millions

The Wolper Law Firm is currently investigating claims against Ernest Romer, a former Financial Advisor at Corecap Investments in Sterling Heights, Michigan.  Ernest Romer has been in the securities industry since the 1990s and previously worked at LM Kohn & Company.

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on September 18, 2018, the Securities and Exchange Commission (SEC) charged Ernest Romer with defrauding brokerage customers, including many elderly retirees and unsophisticated investors out of more than $2.7 million in a multi-year investment scam.  According to the SEC’s complaint, Ernest Romer persuaded at least 30 of his brokerage customers to sell securities in their accounts and transfer the money into shell corporations he owned and controlled.  Ernest Romer was, in actuality, operating a ponzi scheme.

To review a copy of the SEC litigation release regarding Ernest Romer’s SEC complaint, click https://www.sec.gov/litigation/litreleases/2018/lr24274.htm

Ernest Romer’s conduct spawned criminal indictments for embezzlement.  Ernest Romer was ordered to pay restitution and, separately, will be sentenced in late September 2018.

Separately, Ernest Romer has been the subject of more than twenty (20) customer complaints for sales practice misconduct during his career.  He has also been terminated and/or “permitted to resign” prior to termination by numerous employers.  Among the customer complaints against Ernest Romer including the following:

  • July 2018—“Claimant alleged RR stole money from her, representing it as loans and/or investments.” The matter was settled for $130,000.
  • April 2018—“Plaintiff allege that….Romer solicited investments in an entity…which turned out to be Romer’s personal LLC… The matter was settled for $170,000.
  • April 2018—“Client allege theft of funds.” The matter was settled for $148,000.
  • March 2018—Client “alleged that Romer stole $222,000…” The matter was settled for $110,000.
  • January 2018—“Claimants allege fraud and embezzlement.” The matter was settled for $150,000.
  • December 2017—Client “alleges fraud and theft of money against rep and negligent supervision.” The matter was settled for $210,000.

To review a full copy of Ernest Romer’s FINRA disclosure report, click https://brokercheck.finra.org/individual/summary/2311741#disclosuresSection

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients.  To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

It goes without saying that Financial Advisors cannot misappropriate funds out of a customer’s account.  Their employing brokerage firm has a duty to supervise the activities undertaken by their Financial Advisors as well as the transactions, including withdrawals and deposits, from customer accounts.  Ernest Romer’s employer failed to fulfill its duties.

If you or someone you know was a customer of Ernest Romer and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at mwolper@wolperlawfirm.com to discuss your specific situation and the legal options available.  The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.

Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities.  Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.

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