SEC v. Kerry Lee Broderick (free riding and parking, 2024)

Settled

✓ Checked against the primary document on October 3, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In June 2024 the SEC barred former registered representative Kerry Broderick for aiding her supervisor Andrew Komarow's free-riding scheme by assuring the broker-dealer that his unfunded trades were funded. She was barred from the securities industry and penny-stock offerings.

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 instituted and settled this proceeding on June 12, 2024 (Exchange Act release 100318), on her offer and without admission or denial.

The order finds that in December 2022 Broderick, a registered representative at the same firm as Komarow, spoke to the firm's representatives to initiate trades for him and to assure the firm the trades were funded, when he had made unfunded ACH transfers into his own account and traded on the resulting credits, causing large losses. She knew, was reckless in not knowing, or should have known that what she said was false, so she aided and abetted and caused his violations of Section 10(b) and Rule 10b-5.

She was ordered to cease and desist and barred from association with any broker, dealer, adviser, transfer agent or rating organization and from penny-stock offerings. No money was ordered. 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. 2024-06-12 Administrative proceeding instituted (cease-and-desist)

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 order

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.

Related actions

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

Record added September 10, 2026. submit a correction.