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Avon investment adviser pleads guilty to defrauding three financial firms of $3.3 million

Andrew M. Komarow, 37, admitted to a wire fraud scheme that exploited the delay in clearing electronic transfers to fund high-risk options trades, federal prosecutors said.

HARTFORD, Conn. — An Avon investment adviser pleaded guilty in federal court in Hartford to wire fraud in a scheme that cost three financial services companies more than $3.3 million, according to the U.S. attorney's office for the District of Connecticut.

Andrew M. Komarow, 37, entered the plea before U.S. District Judge Vernon D. Oliver, prosecutors said.

According to prosecutors, Komarow, an investment adviser and broker-dealer with a range of clients, took advantage of credit the companies extended to him and of the lag between when he started electronic transfers from his personal bank accounts to his personal brokerage accounts and when those transfers were posted and cleared.

Between about October 2022 and February 2023, prosecutors said, Komarow started about $8.9 million in transfers from his bank accounts into several brokerage accounts, many of them newly opened, even though he did not have enough money in the bank to cover them. He then used the brokerage accounts for high-risk, short-term options trading, trying to make quick profits to cover the shortfall, prosecutors said.

The three companies lost $3,352,507, according to the U.S. attorney's office. The release did not name the companies.

Wire fraud carries a maximum sentence of 20 years in prison. Komarow, who was arrested March 2, is free on a $50,000 bond. A sentencing date has not been set.

The FBI investigated the case.

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