Securities Fraud Blog
FINRA, a regulator of the securities industry, recently issued a Letter of Acceptance, Waiver, and Consent (AWC) regarding former FSC Securities Corporation broker, Andrew Corbman. Pursuant to the AWC, Mr. Corbman was suspended for one month from being registered with any FINRA firm.
Mr. Corbman was registered with FSC Securities from 2/2008 – 1/2011, Kovack Securities from 01/2011 – 11/2015, and Newbridge Securities from 11/2015 – 3/2016.
The AWC may be found here: http://disciplinaryactions.finra.org/Search/ViewDocument/64878 In the AWC, FINRA alleges that “Between April 2009 and March 2010, while registered with a FINRA member firm, Corbman made unsuitable recommendations to three customers that were inconsistent with the customers’ investment objectives and risk tolerances and resulted in overconcentration oftheir liquid net worth in these investments. From April 2009 through June 2009, Corbman improperly recommended to two ofhis customers, who were a married couple with growth objectives and moderate risk tolerances, to purchase unsuitablehighly risky leveraged, inverse Exchange-Traded Funds (Non-Traditional ETFs”).”
The AWC further states: “The investments that Corbman recommended were unsuitable as they were over-concentrated and exposed each customer to a risk of loss that exceeded each customer’s risk tolerance and investment objectives. Therefore, Corbman’s conduct violated NASD Rule 2310 and FINRA Rule 2010. Additionally, between March 2010 and January 2011, Corbman distributed a sales brochure for an alternative mutual fund to at least 10 of his customers that contained information that was misleading and failed to provide a sound basis for evaluating the alternative mutual fund referenced in it.”
Mr. Corbman’s registered offices over the last 12 years were in Ashburn and Lansdown, Virginia.