Cynthia Komarek Barred, Involved In Investor Disputes

The Financial Industry Regulatory Authority (“FINRA”) has new important information to share regarding securities broker Cynthia Komarek (CRD#: 1188714, Barrington, Illinois). It appears that this securities broker, who worked for firms Wells Fargo Clearing Services (2008 to 2017) and Sagepoint Financial (2017 to 2020), is now barred indefinitely as securities broker. This is to settle FINRA’s claims that she violated investigation rules while under FINRA’s suspicion of making unauthorized referrals to an asset manager. In addition, three investors filed disputes about her alleging sales practice violations that caused damages. Let’s take a closer look at these disclosures.

FINRA Issues Bar To Cynthia Komarek For Purported Failure To Comply During 2021 Investigation

It appears that Sagepoint disaffiliated with Cynthia Komarek in August 2020. She supposedly admitted to referring others to an outside asset manager. According to Sagepoint, this type of referral ran afoul of the company’s policy because she did not get permission to make the referrals from Sagepoint.
It appears that FINRA wanted Cynthia Komarek to specify what happened that led to Sagepoint discharging her. Komarek received a 2021 notice from FINRA which contained instructions for her to turn over documents and associated information. This way, FINRA would determine if she violated FINRA rules. However, the broker reportedly did not comply and so the regulator’s investigation ended. For refusing to produce what FINRA asked for, Komarek can no longer be a FINRA-member securities broker effective June 4, 2021.

Komarek’s Sagepoint Financial Client Alleges Inappropriate Investment

Evidently, in an August 31, 2020 FINRA Arbitration Claim, a client identified Cynthia Komarek as having inappropriately sold them an investment. It appears that Komarek did not have authorization to sell the private investment fund. For this reason, the client demanded $1,430,000 in compensation in this ongoing matter.

Client Of Sagepoint Alleges Unsuitable Investment Recommendations By Cynthia Komarek

Evidently, a second client of Sagepoint Financial came forward in August 2020 to express their concerns about Komarek’s sales activities. Supposedly, Komarek recommended an investment that Sagepoint did not authorize as broker-dealer. Not only that, but the client indicated that Komarek made an inappropriate recommendation. Because of this, the client demanded $900,000 in compensation in this ongoing matter. Evidently, this matter is awaiting a resolution.

Merrill Lynch Client Alleges Information Not Disclosed On Variable Annuity

It seems that Cynthia Komarek worked for Merrill Lynch before joining Sagepoint. Evidently, a client of that securities firm lodged a dispute about a variable annuity sale. Specifically, the client contended that Komarek did not disclose important information about an annuity. It seems that the client experienced damages because of investing in this variable annuity. However, Merrill Lynch denied the client’s dispute.

Losses Through Cynthia Komarek?

Did you suffer losses because of broker Cynthia Komarek? If so, call Soreide Law Group at (888) 760-6552 and speak with a skilled securities lawyer about a potential recovery of your losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered substantial compensation for United States investors who have incurred losses because of their financial advisors and securities brokers. Please note that Komarek (also known by the names Cynthia Brown Pearson and Cynthia Ann Brown) denies all allegations of her sales practice violations.