Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker, Cynthia Komarek (CRD # 1188714) was recently barred from the securities industry by FINRA’s Department of Enforcement after refusing to cooperate with an investigation into her termination from the firm she was registered with, SagePoint Financial, Inc.
On August 19, 2020, SagePoint Financial, Inc. filed a Uniform Termination Notice for Securities Industry Registration (Form U5), regarding Ms. Komarek that stated it had discharged her after she admitted making referrals to an outside asset manager without the firm’s approval.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Ms. Komarek.
Registration Background for Cynthia Komarek
Ms. Komarek first became registered in the securities industry in 1983. She was most recently registered with Barrington, IL based SagePoint Financial, Inc. (CRD # 133763) from November 2017 to August 2020. Her previous registrations include Wells Fargo Clearing Services, LLC (CRD # 19616) from November 2008 to November 2017 and Merrill Lynch, Pierce, Fenner & Smith Inc. (CRD # 7691) from September 1991 to November 2008.
FINRA’ s Allegations Against Cynthia Komarek
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated June 4, 2021, Ms. Komarek consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “On April 13, 2021, FINRA sent a request to [Ms. Komarek] for the production of information and documents pursuant to FINRA Rule 8210”;
- “As stated during her counsel’s phone call with FINRA on May 10, 2021, and by this agreement, [Ms. Komarek] acknowledges that she received FINRA’s request and will not produce the information or documents requested.”; and
- By virtue of his actions, Ms. Komarek violated FINRA Rule 8210, regarding cooperating in investigations and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions Cynthia Komarek For Refusing to Cooperate In Securities Investigation
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s June 4, 2021 AWC also indicates that Ms. Komarek consented to the following sanction(s):
- A bar from association with any FINRA member in all capacities.
Cynthia Komarek Has A History of Securities Industry Customer Complaints
In addition to the June 4, 2021 AWC showing Cynthia Komarek being barred from the securities industry for refusing to cooperate in a FINRA investigation, FINRA BrokerCheck for Ms. Komarek reveals she has the following history of customer complaints and/or customer-initiated arbitrations, including but not necessarily limited to:
- On August 28, 2020, a customer-initiated arbitration was commenced naming Ms. Komarek as a respondent regarding alleged actions that occurred while she was associated with SagePointe Financial, Inc. The customer’s allegation(s) involved the unapproved sale of a private investment fund. The customer further alleged damages in the amount of $1,430,000.00. The arbitration is currently pending.
- On August 13, 2020, a customer-initiated written complaint was received by SagePoint Financial, Inc. regarding alleged actions against Ms. Komarek. The customer’s allegation(s) involved the recommendation of an inappropriate investment fund away from and unapproved by SagePoint Financial, Inc. The customer further alleged damages in the amount of $900,000.00. The complaint is currently pending.
- On February 8, 1999, a customer-initiated written complaint was received by Merrill Lynch, Pierce, Fenner & Smith, Inc. Regarding allegations against Ms. Komarek. The customer alleged that material information was not disclosed to them regarding a variable annuity. The customer further alleged damages in the amount of $140,000.00. On September 30, 1999, the complaint was denied.
If you or someone you know has or had a brokerage account with Cynthia Komarek and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.