Financial Advisor Ernest Frerking Barred by FINRA

Ernest Frerking (CRD#: 2588177) is a previously registered Broker and previously registered Investment Advisor.

Broker’s Background

He entered the securities industry in 1999 and previously worked for Merrill Lynch, Pierce, Fenner & Smith, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2022, FINRA sanctioned Ernest Frerking, permanently barring him from all capacities, indefinitely, beginning August 2, 2022. The FINRA sanction states, “Without admitting or denying the findings, Frerking consented to the sanction and to the entry of findings that he refused to appear for on-the-record testimony requested by FINRA. The findings stated that this matter originated from a FINRA Rule 4530 filing by Frerking’s member firm.”

For a copy of the FINRA sanction, click here.

In addition, Ernest Frerking has been the subject of one customer complaint and was also terminated by Merrill Lynch:

  • April 2021 — “Conduct including failure to adhere to Firm standards regarding the servicing of a client and entering into a financial arrangement with a client without the Firm’s knowledge or approval.” Ernest Frerking was discharged by Merrill Lynch, Pierce, Fenner & Smith, Inc.
  • July 2020 — “The Attorney for the deceased customers’ estate alleges misappropriation of funds from July 1999 until July 2020.” The customer dispute was settled for $200,000.

For a copy of Ernest Frerking’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

FINRA Rule 2150 specifically addresses theft and conversion in a customer account, stating “no member or person associated with a member shall make improper use of a customer’s securities or funds.”  This rule includes any “guarantee” that brokers make to customers in relation to losses incurred in a brokerage account.

In addition, FINRA Rule 3240 strictly prohibits a financial advisor from borrowing money from a client absent from unique circumstances, such as a familial relationship between the Financial Advisor and the client.  There is also an exception if the client is a financial institution regularly engaged in the business of lending.  The reason for this prohibition is clear—borrowing money from clients creates an immediate conflict of interest and can potentially lead to theft or conversion of client assets.

The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., 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. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]