Ernest Julius Romer III of Sterling Heights Michigan a stockbroker formerly employed by CoreCap Investments Inc. is the subject of an enforcement action initiated by Securities and Exchange Commission (SEC) where the regulator is seeking sanctions against Romer based upon accusations that the stockbroker has been convicted of embezzlement. Regulatory Action No. 3-19006 (Feb. 22, 2019).
The stockbroker is also referenced in a SEC Complaint containing allegations that misrepresentations had been made by the stockbroker pertaining to investments; and investor funds were converted or stolen while the stockbroker was registered with CoreCap Investments, PR Capital LLC and CoreCap Solutions LLC. Securities and Exchange Commission v. Ernest J. Romer III. Civil Action No. 2:18-cv-12927 (Sept. 18, 2018).
According to the Complaint, between 2014 and 2016, thirty investors were defrauded by Romer, sustaining $2,700,000.00 in losses. SEC alleged that Romer’s customers were induced by the stockbroker to liquidate accounts and transfer them to other institutions for more lucrative investments. Allegedly, customers were deceived about Romer’s business relationships with CoreCap Investments; and their funds were not invested in the market according to Romer’s representations. The Complaint alleged that Romer engaged in a fraudulent scheme violative of Securities Exchange Act of 1934 Section 10(b); SEC Rule 10b-5; and Securities Act of 1933 Section 17(a).
FINRA Public Disclosure reveals that Romer has been identified in twenty-four customer initiated investment related disputes in regard to accusations of the stockbroker’s bad business practices while associated with securities broker dealers including LM Kohn, Leonard Company and CoreCap Investments. Specifically, a customer initiated investment related arbitration claim concerning Romer’s activities was settled for $170,000.00 in damages supported by allegations that when Romer was employed by Leonard Company, LM Kohn and CoreCap Investments, the customer’s funds were converted by the stockbroker. FINRA Arbitration No. 18-01283 (Aug. 9, 2018).
Another customer initiated investment related complaint pertaining to Romer’s conduct was resolved on August 9, 2018 for $130,000.00 in damages based upon accusations of the customer’s funds being stolen during the period that Romer was registered with CoreCap Investments, Leonard Co. Inc. and LM Kohn Inc. In addition, Romer has been suspended by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity based upon findings that the stockbroker neglected to comply with a customer initiated investment related arbitration award in which Romer was found liable on the customer’s claims including fraud; breach of contract; and misappropriation. FINRA Case No. 18-03285 (Apr. 29, 2019).
Romer’s employment with CoreCap Investments has been terminated as of January 27, 2017.
