MENU
component-ddb-728x90-v1-01-desktop

Former Hendersonville broker accused of misusing $103,100 of investors' funds

(Cropped Photo: Jericho / Wikipedia / CC BY 3.0)

A former Hendersonville broker is accused of using at least $103,111 of investors' funds for his and his wife's personal gain.

Investors testified that they gave Andrew J. Ermenc promissory notes, which he promised to use only to invest in the stock market and pay them an "unusually high" rate of return at 18 percent.

The Tennessee Department of Commerce & Insurance’s said Ermenc didn't tell investors that his investing methods could result in a "substantial loss of principal and that he was not truthful about the amount of principal remaining for investors."

Ermenc's registration as a broker was terminated in Dec. 2004, but TDCI said he was also licensed as an insurance provider until Oct. 2005.

“Investment fraud committed by a person who was once licensed to help people manage their money is an especially egregious act,” TDCI Assistant Commissioner for Securities Frank Borger-Gilligan said. “The Department takes the state’s securities laws seriously, and we will vigorously pursue lawbreakers on behalf of consumers. We urge consumers to always remember that if a deal sounds too good to be true, it almost certainly is. Investors can contact us if they have questions about what a broker can and cannot do or if they believe they have been the victim of fraud.”

A Final Order charging Ermenc with $103,000 in civil penalties was issued on Nov. 3 of this year.

To find out more about investments in Tennessee or report misuse of funds, click here.


Trending