Avon Investment Advisor Charged In $3.3M Fraud Scheme: Feds

AVON, CT — An Avon investment advisor has been indicted on federal charges alleging he defrauded three financial services companies of approximately $3.3 million.

David X. Sullivan, U.S. attorney forConnecticut, and P.J. O’Brien, special agent in charge of the New Haven Division of the FBI, announced Tuesday that a federal grand jury in New Haven returned an 11-count indictment against Andrew M. Komarow, 36, of Avon, on Feb. 4.

Komarow appeared on Monday before S. Dave Vatti in Bridgeport, where he pleaded not guilty. He was released on a $50,000 bond.

According to the indictment, Komarow, an investment advisor and broker-dealer, allegedly exploited credit extended by financial services companies by initiating Automated Clearing House transfers — also known as electronic fund transfers — between his personal bank and brokerage accounts before the transactions cleared.

Prosecutors allege that between October 2022 and February 2023, Komarow initiated approximately $8.9 million in transfers from his bank accounts to multiple brokerage accounts, including newly opened accounts, despite having insufficient funds to cover the transactions.

He then used the brokerage accounts to engage in high-risk, short-term options trading in an attempt to generate immediate profits before the transfers were posted and rejected, according to the indictment.

The three financial services companies suffered total losses of $3,352,407 as a result of the scheme, authorities said.

The indictment charges Komarow with 10 counts of wire fraud and one count of securities fraud.

Each count carries a maximum possible sentence of 20 years in prison.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

For more information on the case, click on this link.