National investment loss lawyers KlaymanToskes is investigating broker Andrew Komarow (CRD# 5838564) of LPL Financial and Royal Alliance Associates, who is currently facing charges by the Securities and Exchange Commission (“SEC”), involving an alleged $6.9 million “free-riding” securities trading scheme. “Free-riding” is a fraudulent securities practice whereby traders seek to exploit the “immediate access” credit extended by certain broker-dealers in advance of incoming deposits of cash from bank accounts.
According to the SEC’s investigation, between October 13, 2022 and January 30, 2023, Komarow engaged in a free-riding scheme using his brokerage accounts at four different broker-dealers. Komarow allegedly knowingly, or at least recklessly, requested $6.9 million in deposits into 11 of his brokerage accounts at 4 broker-dealers, which were later reversed due to insufficient funds in the bank accounts from which he sought to transfer those funds.
Before the fund transfers were reversed, Komarow was permitted by the broker-dealers to use some of those funds during the “immediate access” period to engage in speculative securities trading. As a result of his speculative trades, Komarow made at least $615,031 in profits and left the four broker-dealers holding his brokerage accounts with losses totaling at least $3,352,407.
In June 2023, broker Andrew Komarow was permanently barred by the Financial Industry Regulatory Authority (“FINRA”), following his failure to provide information and documents as requested by FINRA in connection with the regulator’s investigation into the allegations surrounding his terminations from LPL Financial and Royal Alliance Associates.
Investors that suffered losses with broker Andrew Komarow are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at lawrence@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national investment loss law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations.
The articles linked below contain important information relating to KlaymanToskes’ investigation of broker Andrew Komarow:
If you suffered losses with broker Andrew Komarow, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.
The firm has helped recover over $600 million* for investors, and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
*Exclusive of attorneys fees and costs.
As an investor, there are a few signs that you should look out for if you believe you may have a claim against broker Andrew Komarow. These signs could potentially indicate broker misconduct, negligence, or investment fraud. Investors are encourage to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
According to FINRA, brokerage firms such as LPL Financial and Royal Alliance Associates are responsible for the supervision of all of the activities of their registered brokers and investment advisors. Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.
Engaging the services of an experienced securities attorney to evaluate the specific circumstances of your case is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you suffered losses with broker Andrew Komarow, or have concerns regarding your investment portfolio at LPL Financial and/or Royal Alliance Associates, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.