Barred LPL Broker Andrew Komarow Charged with Fraud 

SEC Charges Andrew Komarow with “Free-Riding” Fraud Scheme – DOJ Indictment Adds Criminal Charges

The securities attorneys at The White Law Group continue to investigate potential securities claims involving former broker Andrew Komarow.

According to a press release from the U.S. Attorney’s Office for the District of Connecticut, Komarow was indicted by a federal grand jury in March 2026 for his alleged role in a multi-million-dollar “free-riding” trading scheme that caused significant losses to financial firms.

The criminal charges follow earlier enforcement actions by regulators. The U.S. Securities and Exchange Commission (SEC) filed charges against Komarow in 2024 and FINRA barred him from the securities industry in June 2023.

Federal Criminal Charges Filed

Federal prosecutors allege that Komarow, of Avon, Connecticut, defrauded three financial services firms by initiating automated clearing house (ACH) transfers from bank accounts that did not contain sufficient funds.

According to the indictment:

• Komarow allegedly initiated approximately $8.9 million in ACH transfers to brokerage accounts.

• He then allegedly used the funds for short-term, high-risk options trading in an attempt to generate profits before the insufficient transfers were detected.

• Instead, the scheme allegedly resulted in losses exceeding $3.3 million to the affected financial firms.

A federal grand jury charged Komarow with:

• 10 counts of wire fraud

• 1 count of securities fraud

Each count carries a maximum potential prison sentence of up to 20 years if convicted.

Komarow pleaded not guilty to the charges and was released on a $50,000 bond pending further proceedings.

SEC Charges and Regulatory Actions

Prior to the criminal indictment, the SEC charged Andrew Komarow (CRD #5838564) with operating a “free-riding” trading scheme involving millions of dollars in unfunded transactions.

The SEC alleged that Komarow made material misrepresentations in order to trade approximately $6.9 million in securities that he did not actually have funds to support.

The SEC later reached a partial settlement with Komarow. As part of that settlement, he agreed that:

• He would not open any brokerage account without providing the firm with a copy of the SEC’s complaint and judgment, and

• He is prohibited from placing trades using unsettled cash.

What Is a “Free Riding” Scheme?

In securities trading, “free riding” refers to an illegal practice where an investor purchases securities without paying for them, then sells the securities before payment is due and attempts to use the proceeds from the sale to cover the original purchase.

This practice violates brokerage regulations that require investors to have sufficient funds or securities in their account before executing trades.

Free-riding schemes can:

• Artificially inflate trading activity

• Create credit risk for brokerage firms

• Distort market integrity

• Lead to substantial losses when trades fail

Allegations of Unfunded Transfers

According to the SEC complaint, between October 2022 and January 2023, Komarow allegedly:

• Initiated unfunded ACH transfers from bank accounts to brokerage accounts at multiple firms

• Traded the unsettled funds in high-risk options strategies

• Withdrew approximately $615,000 while leaving brokerage firms responsible for losses exceeding $3 million

In one instance, regulators alleged that Komarow attempted to transfer $2.4 million from a bank account containing only $100.

FINRA Bar from the Securities Industry

The Financial Industry Regulatory Authority (FINRA) barred Komarow from the brokerage industry in June 2023.

FINRA’s investigation found that Komarow allegedly processed ACH instructions for his own account despite knowing there were insufficient funds, then used the resulting credit to place trades that created a negative balance.

Broker Employment History

According to his FINRA BrokerCheck report, Andrew Komarow worked in the securities industry for approximately twelve years and was associated with the following firms:

• ROYAL ALLIANCE ASSOCIATES, INC. – West Hartford, CT
  12/13/2022 – 01/04/2023

• LPL FINANCIAL LLC – West Hartford, CT
  04/26/2016 – 12/22/2022

• PRUCO SECURITIES, LLC – West Hartford, CT
  10/29/2010 – 05/23/2016

Public records also indicate that Komarow was affiliated with Private Advisor Group, an investment advisory firm that offers securities through LPL Financial.

Filing a Complaint Against Your Brokerage Firm

Brokerage firms have a duty to supervise their financial advisors and ensure that trading activity complies with industry regulations.

When brokers engage in misconduct or fraudulent activity, their brokerage firms may be held liable for investor losses through FINRA arbitration, particularly if the firm failed to properly monitor or supervise the advisor’s conduct.

FINRA arbitration is often the primary legal avenue available to investors seeking to recover losses caused by broker misconduct.

Free Consultation

If you suffered investment losses involving Andrew Komarow, the securities attorneys at The White Law Group may be able to help.

For a free consultation, please contact our firm at (888) 637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to representing investors in claims against brokerage firms and financial professionals across the United States.

Since its founding in 2010, the firm has handled more than 800 FINRA arbitration cases.

Our attorneys represent investors in claims involving:

• Broker misrepresentation

• Unsuitable investments

• Churning

• Selling away

• Unauthorized trading

• Stock fraud

• And other securities law violations

With more than 30 years of securities law experience, The White Law Group has the knowledge and resources to help investors pursue recovery of their financial losses.

For more information, please visit www.whitesecuritieslaw.com.