Licensing and Regulatory Affairs
Media Contact: LARA Communications 517-373-9280
August 16, 2017 - LARA’s Corporations, Securities & Commercial Licensing Bureau (CSCL) issued a Notice and Order to Cease and Desist and a Notice of Intent to Revoke the Securities Agent Registration of Ernest J. Romer III, of Shelby Township, MI.
“The Michigan Uniform Securities Act prohibits securities agents from liquidating customers’ securities and then using the proceeds for personal use,” said CSCL Director Julia Dale. “Our bureau will continue to take strong regulatory actions to protect the public.
CSCL received multiple consumer complaints from several of Romer’s customers alleging that they had provided him with funds to invest on their behalf, but that he stopped taking their calls, and failed to account for their funds. CSCL investigators confirmed deposits of customer funds into bank accounts controlled by Romer. The investigation led CSCL to issue the Notice and Order to Cease and Desist, and the Notice of Intent to Revoke Securities Agent Registration.
The alleged violations by Mr. Romer included engaging in an act, practice, or course of business that operated as a fraud on others in connection with the offer or sale of securities; being subject to an order by the Financial Industry Regulatory Authority (“FINRA”); and engaging in dishonest and unethical practices in the securities industry.
CSCL intends to impose combined fines of $1,500,000 against Romer for the violations alleged in the Notice and Order to Cease and Desist and the Notice of Intent to Revoke Securities Agent Registration.
A person who willfully violates the Michigan Uniform Securities Act or an order issued under that Act is guilty of a felony punishable by imprisonment for not more than 10 years or a fine of not more than $500,000 for each violation, or both.
Before entering into an investment, Michigan consumers are encouraged to contact CSCL and the bureau can run a registration check on any investment adviser, broker-dealer, professional, or product. CSCL can be reached at 517-241-6345 or online at: www.michigan.gov/securities. Investors are reminded that there is no replacement for their own due diligence.
Securities orders, once issued, entered and served, can now be found online here.
For more information about LARA, please visit www.michigan.gov/lara
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