Andrew Komarow Barred By SEC, FINRA

Multiple securities regulators have barred securities broker Andrew M. Komarow [CRD: 5838564, West Hartford, Connecticut], according to disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Evidently, Andrew Komarow worked for LPL Financial LLC from April 26, 2016, to December 22, 2022, and for Royal Alliance Associates Inc. from December 13, 2022, to January 4, 2023. Here’s an overview of the regulatory actions against him.

SEC Barred Komarow For Free-Riding Scheme

Particularly, on February 20, 2024, United States Securities and Exchange Commission issued Case: SEC v. Komarow (Civil Action No. 3:23-cv-01599) sanctioning Andrew Komarow. Notably, Komarow was permanently barred as a securities broker and financial advisor. Evidently, the SEC alleged that Komarow engaged in a "free-riding" securities trading scheme.

The SEC's complaint alleged that, from October 2022 to January 2023, Komarow made unfunded ACH transfers of money totaling $6.9 million from bank accounts to accounts at broker dealers. He allegedly engaged in speculative trading with the resulting credits before the transfers were canceled for insufficient funds. Supposedly, Komarow removed funds from two accounts where he had engaged in free-riding. This scheme left the broker dealers with losses totaling more than $3 million.

To open one of his brokerage accounts, Komarow purportedly made material misrepresentations in his account opening documents and deceptively used others' access credentials to access the brokerage firm's online systems. By doing so, Komarow allegedly violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.

Andrew Komarow Barred By Connecticut

Also, the Connecticut Banking Commissioner issued Case: CO-24-20233-S on January 31, 2024, sanctioning Andrew Komarow. The Banking Commissioner entered a Consent Order stating that Komarow violated Section 36b-4 of the Connecticut Uniform Securities Act. The Consent Order directed Komarow to cease and desist from regulatory violations, denied him investment adviser agent registration, and barred him indefinitely from transacting business as a securities broker and financial advisor.

FINRA Barred Komarow For Obstructing Investigation

Specifically, on June 15, 2023, FINRA issued Case: 2020065394701 sanctioning Andrew Komarow. Specifically, Komarow was barred permanently. Notably, FINRA alleged that Komarow refused to provide testimony and to produce documents and information requested by FINRA in connection with its investigation into the circumstances giving rise to a Form U5 filed by LPL financial LLC.

Supposedly, LPL Financial filed a Form U5 disclosing that it had terminated Komarow for processing ACH instructions for his own account knowing there were insufficient funds, then improperly using credit to place trades, resulting in a negative balance. In response to FINRA's requests, Komarow produced certain documents to FINRA, but he did not respond fully to its request for documents and information. Ultimately, Komarow neither produced the additional requested documents and information nor appeared to provide testimony.

Did You Sustain Losses Because Of Securities Broker Komarow?

Suffer losses because of Andrew Komarow? If you have, reach out to Soreide Law Group online or at (888) 760-6552 and talk to a securities lawyer concerning a possible recovery of your investment losses. Soreide Law Group has obtained recoveries for many investors throughout the United States, works on a contingency fee basis, and advances all costs. Komarow and brokerage firms Komarow worked for deny accusations of sales practice violations.