A former monetary advisor beforehand barred from the trade by FINRA will spend three years in jail for defrauding shoppers out of greater than $4 million.
In response to FINRA data, Ashburn, Va.-based Andrew Corbman registered within the trade at RAF Monetary Company in 1994, with brief stints at Morgan Stanley, FSC Securities, Kovack Securities and Newbridge Securities, amongst others.
In response to FINRA, his disciplinary document is checkered with dozens of settlements alleging “unsuitability, widespread regulation fraud, breach of contract, negligent supervision, breach of fiduciary responsibility and overconcentration” specifically securities. The brokerage regulator barred him in 2016 after he refused on-the-record testimony associated to his termination from a previous agency.
After being barred by FINRA, Corbman affiliated with an unnamed nationwide property planning firm, providing monetary recommendation for shoppers on points starting from trusts and annuities to life insurance coverage.
Corbman labored with two people and two {couples}, however by no means revealed to them that FINRA had kicked him out of the monetary providers trade (or that he’d filed for chapter in 2015).
Corbman requested the shoppers to mortgage him cash or roll over present loans they’d made to him so he might enhance their returns. He finally satisfied them to mortgage him about $4.2 million. He stated he’d make investments the cash in inventory market choices buying and selling, promising excessive returns, a 30% annual rate of interest and a lower of his personal income.
To entice shoppers to mortgage him the cash, Corbman would lie about his previous buying and selling efficiency, providing no less than two shoppers a doc falsely claiming to point out his funding outcomes from 2021 that claimed “112 wins, 82% win historical past and a 90% common return.”
In actuality, Corbman suffered “substantial losses” in his buying and selling historical past from 2019 onward. Corbman misplaced over $4 million of shoppers’ funds, returning solely $120,000 to considered one of his victims.
In response to the Justice Division, Corbman knew the dangers and the way a lot cash he’d misplaced for shoppers, however hid it from them, and even misled them with the false claims of buying and selling wins previously.
By 2022, Corbman’s collectors needed him to repay the expired mortgage agreements, however Corbman claimed he couldn’t due to buying and selling losses. He finally filed for chapter once more, making an attempt to discharge the $4 million in losses. Because of the fraud, no less than one shopper needed to mortgage their dwelling and postpone retirement to make up for the losses.
In response to the Justice Division, along with the jail sentence, Corbman can pay $4.15 million in restitution to his victims.
