FINRA Bars Ernest Frerking for Alleged Refusal to Provide Testimony
Ernest Frerking (CRD #: 2588177), a broker formerly registered with Merrill Lynch, Pierce, Fenner & Smith, has been barred by FINRA, according to his BrokerCheck record, accessed on October 23, 2022. Read on to learn more about his conduct as a broker.
FINRA Bar
On August 2, 2022, Ernest Frerking consented to the entry of findings that he allegedly refused to appear for on-the-record testimony requested as part of a FINRA investigation into his discharge from Merrill Lynch, Pierce, Fenner & Smith.
According to a Letter of Acceptance, Waiver & Consent (AWC), Merrill Lynch allegedly filed a Uniform Termination Notice for Securities Industry Registration (Form U5) stating that Ernest Frerking was fired for failing to adhere to firm standards pertaining to servicing a client and entering into a financial arrangement with a client without the firm’s knowledge or authorization.
On July 14, 2022, Ernest Frerking allegedly indicated via his counsel that he would not appear for on-the-record testimony.
The AWC concluded that this alleged refusal violated FINRA Rules 8210 and 2010.
FINRA Rules 8210 and 2010
FINRA Rule 8210 requires members to provide documents, information, and testimony upon request by FINRA.
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
FINRA permanently barred Ernest Frerking on August 2, 2022.
You can read a copy of the AWC here.
Termination from Merrill Lynch, Pierce, Fenner & Smith
On April 9, 2021, Ernest Frerking was fired from Merrill Lynch, Pierce, Fenner & Smith following allegations of misconduct, including failure to adhere to firm standards concerning the servicing of a client and entering into a financial arrangement with a client without firm knowledge or approval.
Investor Dispute
On July 7, 2020, an attorney representing certain deceased investors’ estate alleged that Ernest Frerking misappropriated funds from July 1999 to July 2020. This dispute was settled for $200,000.
FINRA Rule 2150
FINRA Rule 2150 forbids brokers from misusing investors’ funds.
Background Information
Ernest Frerking has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 2 – Non-Member General Securities Examination
He previously worked for Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691).
Kurta Law Can Help
If you worked with Ernest Frerking and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.
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