SEC bars financial advisor indefinitely

SEC bars financial advisor indefinitely
Connecticut-based Andrew Komarow had been barred by Finra in June.
FEB 21, 2024
By  Josh Welsh

The Securities and Exchange Commission Wednesday indefinitely barred Andrew Komarow, a financial advisor, from engaging in financial activities, less than a year after he was barred by Finra.

Komarow, whose Connecticut-based practice focused on special needs and autism, was found to be engaged in a “free-riding” securities trading scheme from October 2022 to January 2023, the SEC settlement said.

“Free-riding" is a fraudulent practice in which securities traders seek to exploit the "immediate access" credit that's extended by certain broker-dealers in advance of incoming deposits of cash from bank accounts.

Komarow made “unfunded automated clearing house transfers of money totaling $6.9 million from multiple bank accounts to accounts at broker-dealers and engaged in speculative trading with the resulting credits before the transfers were cancelled for insufficient funds,” the SEC found.

According to the SEC, it is alleged that although Komarow’s trading at each of the broker-dealers didn’t bring in much profit, he removed funds from two accounts in which he had engaged in free-riding. Komarow’s free-riding scheme left the broker-dealers with losses that totaled more than $3 million. Meanwhile, Komarow made at least $615,031 in profits, according to the SEC.

Although none of his clients have come forward with any official complaints, Komarow still was found to have violated a section of the Connecticut Uniform Securities Act, according to the settlement.

Komarow was previously highlighted in an InvestmentNews profile for his focus on neurodiversity and understanding special-needs financial planning. Planning Across The Spectrum, his Connecticut-based firm, specialized in that area, with most of his staff being neurodivergent as well.  Komarow was also an InvestmentNews 2021 Diversity, Equity & Inclusion award winner, as a See It, Be It role model.

Komarow agreed to the settlement without admitting to or denying the SEC’s findings.

Komarow’s lawyer, Louis Tambaro, did not respond to calls for comment by the time this article was published.

Don't worry about competitors, focus on clients and doing things right

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.