SEC bars ex-LPL advisor who aided special needs rep’s trading scheme
The Securities and Exchange Commission on Wednesday barred a former LPL Financial advisor who worked alongside Andrew Komarow, a former financial advisor who built a practice focused on clients with special needs and autism and who recently was barred from the securities industry for a trading scheme.
The assistant to Komarow was Kerry Lee Broderick, who was registered with LPL Financial from November 2021 to November 2023, the total of her stint in the securities industry.
According to the SEC’s order, Komarow created a so-called “free-riding” trading scheme, knowingly making unfunded automated clearing house transfers of money from his bank account to his personal brokerage account.
He then allegedly engaged in speculative trading with the resulting credits before the transfers were cancelled for insufficient funds, resulting in losses for the firm.
According to the SEC’s order, Broderick spoke to other reps at the broker-dealer to initiate trades for Komarow and to assure the firm that the trades that Komarow had placed should be processed and were funded.
“When Broderick participated in those calls, she knew, or was reckless in not knowing, or should have known that the information she was communicating was false,” according to the SEC.
Broderick did not respond to a message Thursday morning via LinkedIn to comment. She reached a settlement with the SEC about the matter without admitting or denying the Commission’s findings.
A spokesperson for LPL Financial, where Komarow worked from April 2016 to December 2022, did not return a call Thursday to comment.
“This is always tricky,” said Sander Ressler, managing director of Essential Edge Compliance Outsourcing Services. “I’ve dealt with financial professionals
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