SEC charges Michigan-based adviser in $2.7 million investment scam

SEC charges Michigan-based adviser in $2.7 million investment scam
Ernest J. Romer III allegedly defrauded at least 30 of his clients, including elderly retirees and unsophisticated advisers.
SEP 19, 2018
By  Sarah Min

The Securities and Exchange Commission charged a Michigan-based financial adviser with defrauding elderly retirees and other unsophisticated investors out of $2.7 million. ​ According to the SEC, Ernest J. Romer III persuaded at least 30 of his clients to transfer proceeds from their brokerage accounts to P&R Capital or CoreCap Solutions. From 2014 to 2016, customers believed that the two companies were Mr. Romer's affiliated broker-dealers, but instead, they were his own businesses. The SEC said Mr. Romer promised to give his clients a better return on their investments, but he allegedly took the savings to invest in his own trading, make Ponzi-like payments and repay customers who lost investments at his former brokerage firm. He also allegedly took the money to benefit himself and his own family. Mr. Romer could not be reached for comment. Mr. Romer has been barred by the Financial Industry Regulatory Authority Inc. and, according to BrokerCheck, has 47 disclosures, including nine criminal events and two financial events. The SEC is seeking disgorgement of ill-gotten gains with prejudgment interest as well as civil penalties. (More: SEC files fraud charges against firm for working with barred broker)

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave