A former registered rep in the U.S. has been permanently banned and ordered to disgorge US$4.15 million after duping investors.
The U.S. Securities and Exchange Commission (SEC) obtained a final judgment in a U.S. district court against Andrew Scott Corbman, a former rep with various brokerage firms, who was charged in connection with an alleged investment fraud scheme.
According to the SEC’s complaint, between 2019 and 2023, Corbman raised more than US$4 million from investors based on false and misleading statements about his investing track record, the riskiness of their investments and the use of investor funds.
The regulator alleged that he claimed to be a successful trader, when he actually racked up trading losses of more than US$3 million. It said that he failed to inform investors about his lengthy disciplinary history in the securities industry and a past bankruptcy, and that he allegedly misused investors’ funds by engaging in risky trading and using some of their money to pay personal expenses.
In a parallel criminal case, Corbman was sentenced to three years in jail, three years of supervised release and ordered to pay restitution to investors, after pleading guilty to mail fraud.
Corbman consented to the entry of the final judgment in the SEC’s case against him. That judgment specified that the disgorgement order against him would be deemed satisfied by any restitution paid in the criminal case.