An Avon investment adviser who previously founded an autism-focused financial planning firm has been indicted on federal fraud charges stemming from an alleged scheme that cost three financial services companies more than $3.3 million.
A federal grand jury in New Haven returned an 11-count indictment on Feb. 4 charging Andrew M. Komarow, 36, with wire fraud and securities fraud, according to authorities.
Komarow appeared Monday before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and pleaded not guilty. He was released on a $50,000 bond.
Prosecutors allege Komarow exploited the timing lag in Automated Clearing House transfers — electronic fund transfers between bank and brokerage accounts — to gain access to credit he was not authorized to use.
The practice, known as “free-riding,” involves exploiting the window between when a broker-dealer extends immediate access to deposited funds and when the underlying bank transfer actually clears.
Between October 2022 and February 2023, Komarow allegedly initiated about $8.9 million in transfers from bank accounts with insufficient funds into multiple brokerage accounts, then used those accounts to conduct high-risk, short-term options trading before the transactions cleared, authorities said.
The indictment charges Komarow with 10 counts of wire fraud and one count of securities fraud, each carrying a maximum prison term of 20 years.
The charges stem from earlier regulatory actions against Komarow. The U.S. Securities and Exchange Commission filed a civil complaint against him in December 2023, alleging he traded $6.9 million in funds he did not have. A federal judge subsequently granted a consent judgment barring him from acting as a broker or investment adviser.
The Certified Financial Planner Board of Standards separately barred him from holding a CFP certification.
Komarow had previously founded Planning Across the Spectrum, a Farmington-based firm that specialized in financial planning for individuals with autism spectrum disorder and their families. The firm’s website is no longer active.
The investigation was conducted by the FBI. Assistant U.S. Attorney Christopher W. Schmeisser is prosecuting the case.
