Former broker Ernest Romer was recently charged by the Securities and Exchange Commission (SEC) over allegations that he defrauded his brokerage customers, cheating them out of millions.
According to the SEC, many of Romer’s victims were unsophisticated investors and elderly retirees. In total, it’s estimated that Romer allegedly cheated his clients out of more than $2.7 million in what the SEC has called was a multi-year investment scam.
The allegations include that Romer convinced about 30 of his clients from 2014 to 2016 to sell securities in their brokerage accounts and transfer the funds to CoreCap Solutions, LLC or P&R Capital, LLC. Romer allegedly told the investors that he would invest their funds into the stock market to earn better returns. Due to Romer’s misrepresentations, his clients were led to believe that P&R Capital, LLC and CoreCap Solutions, LLC were linked with a broker-dealer where Romer worked.
In fact, P&R Capital, LLC and CoreCap Solutions, LLC were Romer’s personal businesses. To make matters worse, he never invested his client’s funds in the stock market. Instead, he used the money for himself and invested much of it in his own brokerage account. Additionally, he also used portions of the funds to make Ponzi scheme-like payments to some of his other clients. He also used some of the funds to repay customers from his prior brokerage firm after they suffered losses because of his recommendations.
As a result of his misrepresentations and misconduct, the SEC accused Romer of violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5.
Meyer Wilson Has Successfully Represented Romer’s Victims
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Meyer Wilson has already won a full compensatory damage award from Romer’s former brokerage firm on behalf of two investor victims. If you lost money while investing with Romer, Meyer Wilson would like to discuss your legal options. Give our office a call today at (614) 532-4576 to speak with one of our experienced investment fraud attorneys.
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