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Ernest Frerking Terminated: KlaymanToskes Investigates Violations While at Merrill Lynch

August 6, 2022

Another Broker Permanently Barred After Allegations of Securities Rules Violations

Ernest Grey Frerking (CRD# 2588177) was terminated from his employment with Merrill Lynch and has been permanently barred from working as a financial advisor as of August 2, 2022. His termination results from his refusal to appear for on the record testimony in response to a FINRA investigation.

National investment fraud lawyers KlaymanToskes are investigating (“Ernest Frerking Merrill Lynch Investigation”) former Merrill Lynch financial advisor Ernest Frerking in light of his recent termination from the securities industry.

Facts surrounding Ernest Frerking’s Securities Rules Violations

Ernest Frerking was terminated by Merrill Lynch over allegations that he:

  • failed to adhere to Merrill Lynch’s standards regarding the servicing of a client and
  • entered into a financial arrangement with a client without the firm’s knowledge or consent.

Merrill Lynch Reporting To FINRA Triggered an Inquiry

FINRA Rule 4530 requires brokerage firms to report certain events, summaries regarding written customer complaints, and copies of legal actions.  The report that Merrill Lynch filed alerted FINRA to Ernest Frerking’s termination. The report also triggered a FINRA investigation of the surrounding circumstances to determine whether there were violations of federal law or FINRA rules. FINRA sent a request to Ernest Frerking for on the record testimony in furtherance of FINRA’s investigation.

Ernest Frerking, responded the FINRA’s request through an email to FINRA sent by his attorney. His attorney stated that Ernest Frerking was in receipt of FINRA’s request and refused to appear for on the record testimony. Ernest Frerking’s refusal was in violation of FINRA rules.

Ernest Frerking’s Securities Rules Violations

FINRA Rule 8210 gives FINRA the authority to require anyone subject to FINRA’s jurisdiction to testify at a location specified by FINRA staff, under oath or affirmation, regarding any matter involved in an investigation. A failure to provide requested testimony is a violation of FINRA Rule 8210. Ernest Frerking’s refusal to appear for on the record testimony was a violation of FINRA Rule 8210.

FINRA Rule 2010 mandates that member firms and their associated persons must “observe high standards of commercial honor and just and equitable principles of trade.” Any violation of FINRA Rule 8210 is an automatic violation of FINRA Rule 2010.

Thus, by refusing to appear for on the record testimony, Ernest Frerking violated both FINRA Rules 8210 and 2010.

The Consequences of Ernest Frerking’s Securities Rules Violations

Ernest Frerking has been permanently barred from associating with any FINRA member in all capacities as a result of his refusal to appear for on the record testimony. As such, he is unable to work at a brokerage firm, regardless of the position.

Ernest Frerking Merrill Lynch Investigation

Former customers of Ernest Frerking who have experienced investment losses over $100,000, and those who have information relating to the manner in which Ernest Frerking handled customer accounts, are encouraged to contact Lawrence L. Klayman, Esq., at 1-888-997-9956, and download our Special Investor Report.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm represents all investors who have lost money due to financial fraud or mismanagement. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

KlaymanToskes

Lawrence L. Klayman, Esq.

888-997-9956

lklayman@klaymantoskes.com

www.klaymantoskes.com