SEC v. Andrew M. Komarow (free riding and parking, 2023)

Settled

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In December 2023 the SEC charged Connecticut broker Andrew Komarow with free riding, alleging unfunded transfers of $6.9 million to at least ten accounts at four broker-dealers that left the firms with over $3 million of losses. He consented to a partial judgment with an injunction and trading restrictions, leaving disgorgement and penalty to the court.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced on December 8, 2023 (litigation release 25908) a complaint in the District of Connecticut.

The SEC alleged that from October 2022 to January 2023 Komarow made unfunded electronic transfers from bank accounts to at least ten accounts at four broker-dealers, traded on the credit the firms made available while the transfers were pending, and made false deposits totalling over $6.9 million. He removed at least $615,031 and left the firms with losses over $3 million.

Without admitting or denying, he consented to a partial judgment, subject to court approval, enjoining him from violating Section 10(b) and Rule 10b-5, barring him from opening brokerage accounts without giving the firm the complaint and judgment, and from trading without settled cash covering the trade. Disgorgement, interest, a penalty and the length of an officer-director bar were left to the court. The record showed the status as judgment; the judgment was partial. This library tags the matter as free riding.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Free riding and parking — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2023-12-08 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 2 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.