Securities Arbitration Lawyer Blog
FINRA has barred former SagePoint Financial, Inc. broker Cynthia Komarek from the securities industry for failing to cooperate with a FINRA investigation of the Form U5 filed by SagePoint Financial, which stated that the firm had discharged Komarek after she admitted making referrals to an outside asset manager without the firm’s approval.
The Form U5 is the Uniform Termination Notice for Securities Industry Registration, and broker-dealers use it to terminate the registration of an individual in the appropriate jurisdictions and/or self-regulatory organizations (“SROs”).
If you have lost money with Cynthia Komarek, or SagePoint Financial, Inc., contact FINRA arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA Letter of Acceptance, Waiver, and Consent
Cynthia Komarek and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on June 4, 2021.
On August 19, 2020, SagePoint Financial filed a Form U5 disclosing that it had discharged Komarek after she admitted making referrals to an outside asset manager without SagePoint Financial’s approval.
On April 13, 2021, pursuant to FINRA Rule 8210, FINRA requested that Komarek produce documents and information.
On May 10, 2021, Komarek acknowledged receipt of FINRA’s request and indicated that she would not produce the information or documents requested.
By refusing FINRA’s request to produce the information and documents pursuant to FINRA Rule 8210, Komarek violated FINRA Rules 8210 and 2010.
FINRA Rules 8210 and 2010
FINRA Rule 8210(a)(1) states, in relevant part, that FINRA may require a person subject to FINRA’s jurisdiction “to provide information orally, in writing, or electronically . . . with respect to any matter involved in [a FINRA] investigation[.]” FINRA Rule 8210(c) further states that “[n]o . . . person shall fail to provide information . . . pursuant to this Rule.”
A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires member firms and their associated persons to “observe high standards of commercial honor and just and equitable principles of trade.”
Cynthia Komarek (CRD#: 1188714)
Komarek has 36 years of experience in the securities industry and had been registered as a broker with SagePoint Financial, Inc. in Barrington, IL from November 2017 to August 2020. She was previously registered with Wells Fargo Clearing Services, LLC in Woodstock, IL from November 2008 to November 2017.
Her FINRA CRD shows two pending customer disputes. One customer complaint filed on August 31, 2020, seeks $1.4 million in damages, while the other customer complaint filed on August 13, 2020, seeks $900,000 in damages. Both claims relate to inappropriate involvement or inappropriate recommendations in the sale of investment products not approved by Komarek’s broker-dealer, SagePoint Financial.
Komarek is not currently registered or associated with any FINRA member firm. However, she remains subject to FINRA’s jurisdiction.
How to Recover Losses or Obtain a Free Consultation
If you have lost money with Cynthia Komarek, or SagePoint Financial, Inc., contact FINRA arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.
**Corrections and Clarifications: September 29, 2021**
- This blog indicated above that FINRA has barred former SagePoint Financial, Inc. broker Cynthia Komarek from the securities industry for failing to cooperate with a FINRA investigation of the Form U5 filed by SagePoint Financial, which stated that the firm had discharged Komarek after she admitted making referrals to an outside asset manager without the firm’s approval.
- To be clear, there was no finding against Ms. Komarek, however, Ms. Komarek consented to the sanction imposed by FINRA.