A former barred broker with a long history of client disputes has been sentenced to three years in federal prison for orchestrating a fraudulent options-trading scheme that caused substantial financial harm to multiple investors.
Andrew Corbman, previously a registered representative in Ashburn, Virginia, was convicted of mail fraud after misleading four clients—two couples and two individuals—into lending him $4.2 million for a purportedly lucrative options-trading strategy.
According to the U.S. Department of Justice, Corbman promised his investors up to 30% interest on the loans, along with a share of the trading profits, while failing to disclose his prior regulatory sanctions, permanent industry bar, and a personal bankruptcy.
Despite being barred by FINRA in 2016 and dismissed by his last firm, Newbridge Securities, Corbman continued to present himself to investors as a seasoned, successful market professional. Prosecutors alleged he made “material misrepresentations” about his investing track record and omitted key facts about his disciplinary history to gain investor trust and secure new funds.
According to court filings, Corbman sustained steep losses in his trading accounts and received multiple warnings from Fidelity about the “substantial losses” he was incurring. Fidelity requested that he acknowledge these losses in writing before allowing him to continue trading. Instead of disclosing these issues to his clients, Corbman fabricated performance data and shared false trading histories in an attempt to retain their confidence and delay withdrawal requests.
The Department of Justice stated in a summary of facts: “Corbman, fully aware of the risks and the calamitous results he was producing, not only concealed the risks from his clients, but actively misled them in an attempt to stave off requests for funds and to attempt to obtain new funds.”
The fraudulent conduct resulted in nearly the entire $4.2 million investment being lost. In addition to his prison term, Corbman has been ordered to pay $4.15 million in restitution to the affected clients.
Corbman pleaded guilty in December to one count of mail fraud. His defense attorney, federal public defender Cadence Mertz, did not respond to a request for comment following sentencing.
Corbman’s professional record reflects a pattern of misconduct dating back more than two decades. He began his brokerage career in 1994 with R A F Financial and rotated through a series of firms over a 21-year span. According to FINRA’s BrokerCheck database, he was the subject of 20 customer dispute disclosures, with the majority settled for amounts ranging from $8,850 to $428,250.
In March 2016, Corbman was terminated by Newbridge Securities, following a one-month suspension by FINRA. The regulator found he had made unsuitable investment recommendations to clients, concentrating their portfolios in high-risk investments that were inconsistent with their stated risk tolerances and objectives.
Corbman neither admitted nor denied the findings but accepted the suspension. At the time, he had also filed for personal bankruptcy, citing complications from major medical surgery, and no monetary sanctions were imposed due to his financial hardship.
Later that year, in October 2016, FINRA barred Corbman from the industry for refusing to provide testimony regarding his termination and related allegations of unauthorized trading. Despite the ban, Corbman continued soliciting funds under the guise of operating a profitable options strategy.
The DOJ alleges that from 2019 onward, Corbman’s trading activity produced sustained losses, despite his repeated claims to investors that he was generating significant returns. In one instance, he falsely claimed to have achieved a 90% average return in 2021, while in reality his trading performance was deeply negative.
This case highlights ongoing challenges for compliance teams and independent advisors when it comes to protecting clients from bad actors who operate outside regulatory oversight. It also underscores the importance of conducting rigorous due diligence and maintaining transparency with clients about a manager’s background, credentials, and investment approach.
For RIAs and broker-dealers, the Corbman case serves as a cautionary example of how legacy disciplinary records can resurface as material red flags in private fund marketing and advisor-led investment pitches—particularly when such strategies are promoted on a direct or pooled basis outside traditional custodial platforms.
The regulatory violations and criminal fraud charges in this case underscore the need for strong internal controls, investor education, and continual monitoring of any former industry professionals marketing unregistered investment products.
Corbman’s ability to raise millions from clients despite being permanently barred and having an extensive complaint history illustrates the reputational risk and fiduciary challenges that persist when clients move capital based on perceived personal trust rather than third-party verification.
Wealth managers can take this as a timely reminder to help clients cross-reference any nontraditional investment opportunity with regulatory databases like BrokerCheck and to assess the operational legitimacy of any private offering—especially those promising unusually high returns with little documentation.
In the post-verdict announcement, the Justice Department reiterated its commitment to prosecuting individuals who misuse client trust. “The victims in this case were misled and financially devastated by someone who knowingly concealed the truth,” said prosecutors. “Investment professionals must be held to the highest standards of honesty and disclosure.”
For advisors working with high-net-worth or retirement-age clients, this case is a call to reinforce vigilance around high-return private placements and to conduct regular client education sessions on red flags, including unauthorized strategies, past disciplinary actions, and unverifiable performance claims.
Corbman’s downfall illustrates that regulatory enforcement doesn’t always prevent bad actors from operating in the shadows—but strong advisor-client relationships, grounded in fiduciary care and robust due diligence, can help prevent similar financial harm.
