Shelby Township Broker, Ernest J. Romer, III, Facing Securities Fraud Charges From Michigan’s Licensing And Regulatory Affairs Department (LARA)
August 2017- A Cease and Desist Order has been issued by Michigan’s Licensing and Regulatory Affairs Department (LARA) against Ernest J. Romer III, a Shelby Township investment broker for alleged investment fraud. LARA also sent a notice of Intent to Revoke Romer’s Securities Agent Registration.
The allegations against Romer include engaging in an act, practice, or course of business that operated as a fraud on others in connection with the sale or offer of securities, and engaging in dishonest and ethical practices in the security industry. Romer is facing additional charges from the state of Michigan.
LARA’s corporations, Securities and Commercial Licensing Bureau (CSCL), received multiple complaints from several of Romer’s clients.
The complaints allege that Romer received investment funds he failed to account for, and dodged phone calls and communication attempts from these customers. CSCL investigators discovered that Romer had deposited customers’ funds into personal bank accounts. Ernest Romer faces up to 10 years in prison and a fine of up to $500,000 for each violation. Combined, LARA intends to fine Romer $1.5 million. He is also facing a civil suit from at least one client.
These allegations serve as a reminder to investors to remain diligent regarding all investments, including keeping in close contact with advisors, monitoring investments, noticing any potential warnings or red flags, and regularly reviewing each advisor’s performance and reputation- even for those who have worked with the same advisor for years.
LARA encourages Michigan consumers to contact CSCL to run a registration check on any investment advisor, professional, product, company or broker-dealer. CSCL can be reached at 517-241-6345 or online at: www.michigan.gov/securities.
For more information on this story visit LARA’s press release: http://www.michigan.gov/lara/0,4601,7-154-10573_11472-428879–,00.html.