National investment loss lawyers KlaymanToskes reports broker/investment advisor Andrew Komarow (CRD# 5838564) has been permanently barred from acting as a broker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”).
FINRA’s decision comes after Komarow refused to produce information and documents, and to provide on-the-record testimony, as requested by FINRA regarding his former firm, LPL Financial’s, Form U5 disclosure that it had terminated him 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.
According to FINRA BrokerCheck, Andrew Komarow was previously registered with LPL Financial from 2016 to 2022 in West Hartford, CT. He was then licensed with Royal Alliance Associates from 2022 to 2023 in West Hartford, CT.
Investors that suffered losses with Andrew Komarow may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lklayman@klaymantoskes.com to discuss your recovery options at no cost.
On June 15th, 2023, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Andrew Komarow, disclosing that he consented to sanctions of a permanent bar from associating with any FINRA member in all capacities.
According to the AWC, on December 22, 2022, LPL Financial filed a Form U5 disclosing that the firm had terminated Komarow for “process[ing] ACH instructions for his own account knowing there were insufficient funds, then improperly us[ing] credit to place trades, resulting in negative balance.”
FINRA’s Form U5 is the “Uniform Termination Notice for Securities Industry Registration,” used by brokerage firms each time one of their registered employees leaves the firm, for any reason.
On February 9, 2023, LPL Financial filed an amended Form U5 disclosing that an internal review concluded that Komarow “[c]aused personal account to be opened and ACH instructions to be processed, knowing accounts had insufficient funds [and] [u]sed credited funds to engage in trading that generated losses in [the personal] account, prior to Firm receiving ACH rejection due to insufficient funds.”
FINRA sent a request to Komarow for on-the-record testimony on February 3rd and 5th, 2023, pursuant to FINRA Rule 8210. The AWC states that FINRA issued its request in connection with its investigation “into the circumstances giving rise to the Form U5 filed by LPL Financial”. Komarow allegedly produced certain requested documents to FINRA on March 7, 2023, but he did not respond fully to FINRA’s request.
On May 10th and May 14th, 2023, Komarow acknowledged that he received FINRA’s request and would neither produce the additional requested documents and information nor appear to provide on-the-record testimony at any time. By refusing to appear for on-the-record testimony, Andrew Komarow violated FINRA Rules 8210 and 2010.
Under FINRA Rule 8210, all brokerage firms and registered financial professionals are required to provide information, documents, and testimony upon regulators’ requests.
A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires brokerage firms and their registered representatives to “observe high standards of commercial honor and just and equitable principles of trade.”
Former customers of Andrew Komarow that suffered losses at LPL Financial or Royal Alliance Associates are encouraged to contact our firm immediately to discuss recovery options at 888-997-9956 or on the web at www.klaymantoskes.com.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com