The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Ernest Romer. According to his publicly available FINRA BrokerCheck report, Ernest Romer, has been the subject of numerous customer disputes.
Ernest Romer was a Michigan based securities broker. He worked in the securities industry for twenty-three years. During his career, he was registered with nine different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- Portfolio Asset Management/USA Financial Group Inc. (1993)
- Sigma Financial Corporation (1993)
- Independence Once Brokerage Services (1994-1995)
- First of America Brokerage Services (1995-1998)
- Natcity Investments (1998)
- Comerica Securities (1999-2004)
- Leonard & Company (2005-2012)
- L.M. Kohn & Company (2012)
- Corecap Investments (2012-2017)
The Allegations
- In October 1998, a customer alleged that Ernest Romer made unauthorized option trades in their account. This case was settled for $130,110 in damages.
- In November 2003, a customer alleged that Ernest Romer recommended unsuitable variable annuities. The customer alleged that they were unsuitable given their circumstances and investment objectives. The customer also alleged that Romer failed to disclose the risks associated with the investment. This case went to arbitration where the customer was awarded $100,000 in damages.
- In October 2005, a customer alleged that Ernest Romer invested approximately $400,000 even though he had only authorized Romer to invest $200,000. The customer also alleged that Romer also failed to follow instructions to place a stop loss order. This case was settled for $102,208 in damages. Ernest Romer resigned from his position at Comerica Securities amidst the allegations.
- Beginning in 2017, Corecap Investments began receiving complaints from customers alleging that Ernest Romer converted their funds for his own personal use. He set up a securities firm known as P&R Capital. He then solicited funds from Corecap Investments’ customers to invest in this firm without disclosing to them that he was the owner. Romer then converted the millions in funds he received meant for investing for his own personal use. He was eventually convicted on thirteen counts of embezzlement. He was ordered to pay $2,650,000 in restitution to the afflicted customers and sentenced to serve between 85 and 240 months in prison.
What Does This Mean?
While Ernest Romer was soliciting funds for a fictitious entity away from Corecap Investments, his actions were still harming Corecap Investments’ customers. Ernest Romer was harming individuals while acting in his scope of employment at Corecap Investments. Because of this, the securities firm is indeed liable for the actions of their registered broker. Securities firms like Corecap need to have adequate procedures in place designed to supervise its registered brokers and prevent them from engaging in any unauthorized activities. If Corecap had been paying better attention, then they would have caught Ernest Romer before he drastically harmed all of those investors.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Ernest Romer, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.
