Andrew Scott Corbman, a former broker and investment adviser, spent 21 years in the securities industry before 2016. His employment history at several broker‑dealers appears in his FINRA BrokerCheck record.
The Securities and Exchange Commission (SEC) filed a civil action against him following his personal bankruptcy proceedings. On October 3, 2025, a federal judge in the Eastern District of Virginia barred Corbman from the securities industry. He consented to the SEC’s final judgment without admitting or denying the allegations.
This case raises serious concerns about investment fraud and misleading statements by someone who held both registered investment adviser (RIA) status and a Virginia insurance license.
SEC Allegations Against Andrew Scott Corbman
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The SEC alleged that Corbman defrauded investors through materially misleading statements and omissions. According to the complaint, he:
- Lured retail clients with promises of low‑risk investments and high, fixed returns.
- Failed to disclose the true speculative and risky nature of his trading.
- Omitted key facts about his own background, including:
- His personal bankruptcy,
- More than a dozen customer disputes reported to FINRA, and
- His permanent bar from FINRA.
- Failed to disclose that he had surrendered his Virginia insurance license after a state investigation.
How Corbman Solicited Investments
Beginning in 2019, Corbman targeted residents of Northern Virginia, including three retired military officers and a retired federal civil servant. He:
- Used unsecured loan agreements to raise approximately $4.27 million from retail clients.
- Promised high fixed returns of about 30% per year, and in some cases additional profits from his day‑trading activities.
- Instructed investors to mail checks or wire funds directly to him for supposed stock and options trading.
- Assured investors that he would personally handle the funds and trading and would repay principal plus interest.
One investor transferred more than $2 million based on these assurances. Corbman repeatedly told investors that their money was “safe,” even as he offered guaranteed, unusually high returns.
Misrepresentations About Investment Risk
Corbman represented his strategy as low risk and appropriate for retirement savings, but instead:
- Used investor funds for highly speculative day trading.
- Continued to solicit larger investments even after suffering substantial trading losses.
- Encouraged investors not to withdraw their funds despite mounting losses.
- Failed to disclose:
- His bankruptcy case,
- His extensive history of customer disputes,
- His permanent FINRA bar, and
- His surrender of his Virginia insurance license.
These omissions and misstatements led many retired military officers and other retail investors to entrust him with their savings. The SEC characterized this conduct as securities fraud in violation of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Fabricated Trading Histories
To bolster his sales pitch, Corbman provided investors with false performance records, including:
- Fabricated trading histories showing an 82% win rate.
- Claimed average returns of 90%.
- Specific projections, such as telling one couple they could expect $287,000 in gains from a $200,000 investment.
These fabricated results portrayed speculative trading as safe and consistently profitable, helping him convince investors that his strategy was tested, successful, and low risk. The SEC later identified these materials as part of the overall fraud.
Misuse and Diversion of Investor Funds
According to the allegations, Corbman diverted approximately $760,000 of investor money for personal expenses, including:
- Back taxes,
- Credit card bills,
- College tuition, and
- Legal fees related to his bankruptcy.
Only about $120,000 was returned to investors, and most of that came from other investors’ funds rather than legitimate trading profits. This pattern is consistent with a classic misuse of investor capital and elements of a Ponzi‑like structure.
Civil and Criminal Actions
SEC Civil Action and Industry Bar
The SEC’s civil action resulted in:
- A permanent injunction barring Corbman from violating the antifraud provisions of the federal securities laws.
- A permanent bar prohibiting him from acting as, or associating with, any broker, dealer, or investment adviser.
- An order that he disgorge $4.15 million, representing funds raised from investors through fraud, with credit for the limited amounts returned.
The antifraud bar is intended to protect investors by preventing Corbman from re‑entering the securities industry in any capacity that would allow him to handle client funds or give investment advice.
Disgorgement of $4.15 Million
The $4.15 million disgorgement figure reflects the total amount Corbman fraudulently raised, net of the limited repayments:
- The SEC and the court determined that only about $120,000 was actually returned to investors.
- The remainder was deemed ill‑gotten gains, subject to disgorgement so that it could be used, as available, to compensate harmed investors.
Criminal Case and Wire Fraud Plea
Separately, the U.S. government brought a criminal case, United States v. Corbman, in which:
- Corbman was charged with wire fraud arising from his investment scheme.
- He pleaded guilty to wire fraud.
- The court imposed restitution and forfeiture orders that encompassed the same $4.15 million identified in the SEC action, ensuring that the civil disgorgement and criminal financial penalties aligned.
Sentencing, Restitution, and Forfeiture
In April 2025, a federal court sentenced Corbman to:
- A three‑year term of imprisonment for wire fraud.
- Restitution and forfeiture obligations requiring him to repay the $4.15 million raised through the scheme, consistent with the SEC’s disgorgement order.
These measures were designed both to punish the misconduct and to provide some financial redress to investors who lost money.
Conclusion and Next Steps for Investors
Andrew Scott Corbman’s case shows how easily investors—even disciplined savers like retired military officers and federal employees—can be drawn into fraudulent schemes built on “guaranteed” high returns, fabricated track records, and incomplete disclosures.
If you believe you may have been a victim of similar misconduct by a financial adviser or brokerage firm, you do not have to navigate the situation alone. Law firms such as Haselkorn & Thibaut, who focus on representing investors in securities and investment fraud matters, may be able to help you evaluate your options for recovery. You can learn more and explore whether you have a potential claim at investmentfraudlawyers.com.
Staying informed, asking hard questions, and promptly seeking experienced legal advice when something seems wrong are critical steps in protecting your savings and holding wrongdoers accountable.
