SEC v. Andrew Scott Corbman, No. 1:25-cv-01630 (Dec. 3, 2025) — Complaint

[OCR_UNRECOVERABLE method=recover reason=missing_pdf ts=2026-08-11T14:53:34.835Z]                                                           

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IN THE UNITED STATES DISTRICT COURT 
FOR THE EASTERN DISTRICT OF VIRGINIA 

ALEXANDRIA DIVISION 
 

 

 
COMPLAINT 

Plaintiff Securities and Exchange Commission (the “Commission”) files this Complaint 

against defendant Andrew Scott Corbman (“Corbman” or “Defendant”) and alleges as follows: 

SUMMARY 

1. From in or about 2019 through in or about 2023 (the “Relevant Period”), 

Corbman carried out a fraudulent scheme to induce multiple investors, including three retired 

military officers and a retired federal civil servant, to purchase over $4 million of securities in 

the form of “Loan Agreements.”  

2. Corbman convinced investors to invest with him by making materially false and 

misleading statements about his investment track record, the riskiness of the investments, and 

use of investor funds.     

3. Corbman misrepresented to investors that his past investments generated 

substantial returns when, in fact, his cumulative trading losses during the Relevant Period 

exceeded $3 million.   

  
SECURITIES AND EXCHANGE 
COMMISSION, 

 

  
Plaintiff, 
 

Case No. 1:25-cv-01630 

v.  
 JURY TRIAL DEMANDED 
ANDREW SCOTT CORBMAN,  
  

Defendant.  
  

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4. While touting his alleged professional accomplishments, Corbman failed to 

inform his investors that: he filed for personal bankruptcy in 2015; his then-employer, a 

registered investment adviser, suspended and terminated his registration in 2016 after Corbman 

received numerous customer complaints; in 2016 he consented to a bar prohibiting him from 

working in the securities industry; and he lost his Virginia insurance business license in 2019 

following an investigation by state regulators.    

5. Rather than investing funds as promised, Corbman misused nearly all of the 

approximately $4.15 million of investors’ funds primarily through extremely high-risk trading. 

Corbman also misappropriated a portion of his investors’ funds to pay his own personal expenses 

including payments of back taxes and credit card debt, and attorney fees for lawyers who 

represented him in bankruptcy proceedings.   

6. He nevertheless falsely assured investors that their funds were safe and that the 

investments he made with those funds were generating large returns.  Corbman’s 

misrepresentations discouraged investors from attempting to withdraw their funds, as they 

instead rolled over the principal from their prior investments into new investments—together 

with the fictitious “interest” they supposedly had earned through Corbman’s trading success—

and, in some cases, invested additional principal with Corbman. 

7. Corbman’s scheme collapsed in 2023, when he admitted to investors that he was 

unable to return their funds and declared bankruptcy. 

VIOLATIONS AND RELIEF SOUGHT 

8. By engaging in the conduct described in this Complaint, Corbman violated, and 

unless enjoined will continue to violate, Section 17(a) of the Securities Act of 1933 (“Securities 

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Act”) [15 U.S.C. § 77q(a)], as well as Section 10(b) of the Securities Exchange Act of 1934 

(“Exchange Act”) [15 U.S.C. § 78j(b)], and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5]. 

9. The Commission seeks to permanently enjoin Corbman from violating these laws 

again pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(b)] and Section 21(d)(1) of 

the Exchange Act [15 U.S.C. § 78u(d)(1); disgorgement of ill-gotten gains derived from his 

unlawful activity pursuant to Section 21(d)(5) and (7) of the Exchange Act [15 U.S.C. § 

78u(d)(5) and (7)]; an order prohibiting Corbman from acting as or being associated with an 

investment adviser, pursuant to Sections 21(d)(1) and 21(d)(5) of the Exchange Act [15 U.S.C. 

§§ 78u(d)(1) and (5)]; and other relief the Court may deem just and appropriate. 

10. Unless Corbman is restrained and enjoined, he will again engage in the acts, 

practices, transactions, and courses of business set forth in this Complaint or in acts, practices, 

transactions, and courses of business of similar type and object. 

JURISDICTION AND VENUE 

11. The Court has jurisdiction over this action pursuant to Sections 20(b) and 22(a) of 

the Securities Act [15 U.S.C. §§ 77t(d)(1) and 77v(a)] and Sections 21(d) and 27(a) of the 

Exchange Act [15 U.S.C. § 78(u)(d) and. § 78aa].  

12. The Court has personal jurisdiction over Corbman.  During the Relevant Period, 

Corbman resided and transacted business in the Eastern District of Virginia and many of the acts 

and transactions constituting violations of the Securities Act and Exchange Act alleged in this 

Complaint occurred in the Eastern District of Virginia.  Many of Corbman’s investors also 

resided within the Eastern District of Virginia at relevant times. 

13. Venue is proper in the Eastern District of Virginia pursuant to Section 22(a) of the 

Securities Act [15 U.S.C. § 77v(a)] and Section 27(a) of the Exchange Act [15 U.S.C. § 78aa(a)].  

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Transactions, acts, practices and courses of conduct constituting violations of the federal 

securities laws occurred within this District, including within the District’s Alexandria Division.  

Corbman and many of his investors also resided within the Alexandria Division of the Eastern 

District of Virginia at relevant times. 

14. Corbman made use of the means or instruments of transportation and 

communication in interstate commerce in connection with the conduct the Commission alleges in 

this Complaint.  Among other things, Corbman used email messages, telephones, the mails, and 

bank wires to perpetrate his investment scheme. 

DEFENDANT 

15. Corbman, age 54, at all times relevant was a resident of Ashburn, Virginia, within 

the Alexandria Division of the Eastern District of Virginia.  He previously held Series 7, 63 and 

65 licenses. 

16. Corbman previously worked for an investment firm regulated by the Financial 

Industry Regulatory Authority (“FINRA”).  From 1994 to 2016, Corbman was a registered 

representative with several broker-dealers registered with the Commission.  And from 2011 to 

2015, Corbman was an investment adviser representative with an investment adviser registered 

with the Commission.  In or about 2016, Corbman’s then-employer suspended him and 

terminated his registration.  Corbman subsequently consented to a permanent bar from 

association in any capacity with any FINRA member firm. 

17. Corbman also previously worked in the insurance business.  In or about May 

2019, following investigations by Virginia regulators, Corbman surrendered his license to 

conduct insurance business or insurance consulting in Virginia. 

18. Corbman filed for bankruptcy in or about September 2015.  He filed a second 

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bankruptcy petition in or about October of 2023. 

19. In December 2024, Corbman pleaded guilty to a single count of wire fraud in the 

United States District Court for the Eastern District of Virginia, Alexandria Division based 

largely on the conduct described in this Complaint.   

FACTS 

I.  Overview of Corbman’s Fraudulent Investment Scheme 

20. Beginning in early 2019, Corbman solicited investments in the form of Loan 

Agreements, that he created, from retail investors, including retirees in Northern Virginia.   

21. Corbman offered and sold the Loan Agreements to investors as a way to fund his 

trading in stocks and options.  Corbman promised investors he would use their money to trade 

securities, including stocks and options, and would repay them a high fixed interest rate of return 

generated from his trading profits, plus the return of their principal.  On two occasions he also 

promised investors a percentage of his profits, in addition to a return of principal and the 

guaranteed rate of interest. 

22. The Loan Agreements were for a fixed term, generally one year, and set interest 

rates primarily around 30%.  None of the Loan Agreements referenced collateral or were 

secured. 

23. Investors mailed checks or wired funds to Corbman for the purpose of funding his 

trading.  Investors reasonably believed they were making an investment and expected to receive 

significant interest payments as a result of Corbman’s trading. 

24. Corbman pooled investors’ funds into his bank account for transfer to his stock 

trading account and used the pooled funds to trade securities.  Investors had no managerial 

control over Corbman’s trading and expected to profit from his investment decisions.   

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25. Corbman provided potential investors with fabricated trading histories that 

materially misstated his successful track record.   

26. Although Corbman claimed that his trading strategy was a proven method with 

little to no risk, he lost more than $1.7 million trading options and approximately $74,000 trading 

four stocks between 2020 and 2023.   

27. Corbman was unable to repay his investors when the Loan Agreements matured 

because he had misappropriated their funds or lost their funds through his risky trading.   

28. To avoid exposing his fraud, Corbman recommended that investors roll over the 

principal of their Loan Agreements plus the purported interest into a new agreement, promising 

that they could compound the return on this purportedly safe investment. 

29. Investors trusted Corbman and repeatedly entered into new, larger Loan 

Agreements with later maturity dates.  By convincing investors to enter into new Loan 

Agreements, Corbman not only delayed his obligation to repay them, but also convinced many of 

the investors to invest additional principal in their Loan Agreements, which ultimately subjected 

them to even greater losses.  

30. Of the $4.27 million he raised from investors between 2019 and 2023, Corbman 

repaid only $120,000 to a married couple who invested jointly.  The remainder of the investors’ 

principal ($4.15 million) and supposed interest was lost or misappropriated and the investors 

have never been repaid. 

II.  Defendant Corbman Made Material Misrepresentations to Induce Investors 
to Enter into Loan Agreements 

A. Defendant Corbman Misrepresented the Riskiness of the Investment 

31. Corbman lied to investors about the riskiness of his investment strategy and 

possibility of losing investor funds.  Corbman falsely told investors the Loan Agreements he 

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offered were low risk and he could pay back investor funds with interest and without any risk of 

loss.     

32. In or about the end of 2019, Corbman misrepresented to a prospective investor 

that the Loan Agreements were low risk, and appropriate and suitable investments for retirement 

savings.  To the contrary, Corbman engaged in risky, highly speculative, day trading.   

33. In or about February 2020, Corbman falsely reported to at least one potential 

investing couple that his trading activity to date had generated substantial returns because of his 

“tried and true method.”  He also told them he would be “assuming all risk” in the transactions.  

Following these representations, they made their first investment of $200,000. 

34. Between 2020 and 2023, Corbman traded only four different stocks in his 

brokerage account.  He lost more than $1.7 million trading options and lost approximately 

$74,000 trading the four stocks in this account. 

35. On at least four occasions from 2019-2023, Corbman received written 

notifications from his brokerage firm reporting that his trading was risky and that he was 

incurring massive losses.  The brokerage firm required him to sign an acknowledgment that he 

had been warned before his trading privileges would be reinstated.  Corbman signed the 

acknowledgements but continued to engage in the same risky trading, resulting in devastating 

losses for his investors. 

36. Prior to entering into the Loan Agreements, each investor informed Corbman that 

they could not afford losses or risky investments.  Corbman, who checked his brokerage account 

balances daily, was fully aware of the risks and the calamitous results he was producing.  

37. Corbman not only concealed the risks from his investors but actively misled them 

to delay requests for repayment of their funds and to induce them to invest even more with him. 

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B. Defendant Corbman Misrepresented his Alleged Profitable Trading 
History 

 
38. In an attempt to induce people to invest with him, Corbman made numerous false 

statements to potential and existing investors about his supposedly successful trading experience.  

In fact, Corbman had a history of unsuccessful trading and had massive investment losses.   

39. For instance, he lost over $1.5 million in 2019 and $425,000 in 2020.  In 2021 and 

2022, he lost over $900,000 and over $500,000, respectively.  

40. Rather than disclosing these losses to investors, Corbman lied about the results of 

his trading to solicit additional investments and delay repayment of existing investments.   

41. In 2020, Corbman first approached one couple regarding a plan for them to 

provide him money that he would invest.  He stated that he would provide guaranteed returns of 

30% plus an additional 10% of his trading profits.  As part of this solicitation, Corbman falsely 

represented that his trading activity to date had generated substantial returns when, in truth, at the 

time of these statements, Corbman had already lost over $1.5 million in trading the prior year 

and had no independent means to repay them their initial $200,000 investment.  In early March 

of 2020, the couple transferred $200,000 to Corbman. 

42. In February 2021, with the initial investment returns, plus 10% of profits, coming 

due, Corbman emailed the couple: “Currently with gains you are due $287,000. $60,000 for 

interest and $37,000 for 10% of my gains,” thus falsely claiming his trading had resulted in a 

$370,000 return.   

43. Notwithstanding Corbman’s mathematical error, the couple reinvested after 

Corbman promised a $100,000 return (rounding up from $97,000 including interest and “gains”), 

and told them he could “do it again,” referring to his ability to profitably trade on their behalf.   

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44. The numbers Corbman reported to these investors were false.  In fact, he had lost 

over $400,000 trading at the time.  Corbman fabricated these numbers to convince them not to 

ask him to return their funds. 

45. Corbman continued to lie to the couple about his trading performance and in 2021 

convinced them to roll over their first investment into a new Loan Agreement and to invest an 

additional $930,000 in February of 2021.   

46. In late January 2022, Corbman sent them an email claiming they would owe a 

large tax bill because of the taxable “gain” of $610,000 from their $200,000 and $930,000 

investments.  To avoid this, he proposed they renew the loan again and only take out a portion of 

what was owed rather than the full amount.   

47. Attached to this email was a sheet he created purportedly showing his 2021 

results.  

The sheet identified individual trades in companies including Amazon and others, and a 

summary falsely stating “137 TRADES, 112 WINS, 82% WIN HIST[ORY], 90% AVG 

RETURN.”  He did not, in fact, make the trades reflected in the email, nor did he have an 82% 

win history or 90% average return.  To the contrary, at the time he sent this message, Corbman 

had lost more than $2.5 million in the prior three years. 

48. In July 2023, Corbman emailed the investors and finally revealed that “because of 

substantial losses in the portfolio” he was unable to repay them.     

C. Corbman Failed to Inform Investors About his Prior Bankruptcy, 
Lengthy FINRA Disciplinary History and Permanent Bar, and 
Virginia Bureau of Insurance Bar 

49. While Corbman represented himself as a successful trader and industry 

professional, he did not inform potential investors of his prior personal bankruptcy filing, his 

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lengthy disciplinary history with FINRA culminating in fines and disbarment, or the loss of his 

license to sell insurance products in Virginia. 

50. Unbeknownst to investors, Corbman filed for Chapter 11 bankruptcy protection in 

September 2015.  In addition, Corbman had over 15 FINRA customer disputes filed against him 

beginning at least as early as 2002.  The majority of these complaints alleged Corbman made 

unauthorized and unsuitable investments in his customers’ accounts.   

51. In late 2016, following a one-month suspension and termination of his registration 

by his employer, Corbman consented to a FINRA Letter of Waiver, Acceptance and Consent 

pursuant to which he agreed to be permanently barred from association, in any and all capacities, 

with any FINRA member firm.  Corbman understood that as a result of this FINRA action, he 

was barred from acting as a registered representative, yet he never told investors this fact. 

52. In May 2019, following an investigation by the Virginia State Corporation 

Commission into multiple instances of misconduct related to his sale of insurance products, 

Corbman agreed in a settlement to surrender his license to “conduct the business of insurance or 

insurance consulting in the Commonwealth of Virginia.”  The Virginia Bureau of Insurance 

alleged that Corbman falsely claimed to be an agent of certain insurance companies, acted as an 

agent on behalf of companies for which he was not appointed, misrepresented facts to induce 

customers to switch to new policies, and failed to report his FINRA bar. 

53. Corbman’s failure to disclose his prior bankruptcy filings and lengthy disciplinary 

history made his prior representations to investors about his expertise and trading record 

misleading.    

D. Corbman Misused Investor Funds 

54. Corbman represented to investors that he would trade their invested funds.  

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Investors did not authorize Corbman to use their funds for his personal expenses.   

55. Corbman nevertheless misappropriated approximately 20% of the funds he 

obtained.  Corbman deposited funds from multiple investors into his personal bank account and 

transferred a portion of those pooled funds into his brokerage accounts to engage in his 

unprofitable trading.  Corbman also misused investor funds to benefit himself just days after 

receiving the first investor’s deposit. 

56. Of the approximately $4 million he raised from investors between 2019 and 2023, 

Corbman misappropriated at least $760,000 in investor funds for his personal use.  During this 

period, he used investor funds from accounts he controlled to pay personal expenses including 

approximately $89,000 in legal fees for his personal bankruptcy filing, $30,000 for college 

tuition and related expenses, $34,000 in personal credit card expenses, and $47,000 in back 

taxes, among other things.  He also used other investors’ funds to partially repay $120,000 to one 

investing couple. 

III.  Corbman Admitted His Misconduct in Defrauding Investors 

57. In late 2022, Corbman finally revealed to one investor that he was unable to meet 

his obligations to them.  He continued to conceal his losses from another investor until July 

2023.   

58. In December 2024, Corbman pleaded guilty to one count of wire fraud in the 

Eastern District of Virginia based largely on the conduct described in this Complaint.  United 

States v. Andrew Corbman, 1:24-cr-255 (MSN)(EDVA Dec. 13, 2024). 

59. As part of his guilty plea, Corbman admitted that: 

• Clients liquidated safe investments and provided Corbman with 
over $4,000,000, all of which he lost, the vast majority in highly 
speculative stock options trading.   

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• Corbman concealed from some clients that he withdrew their funds 
to pay for his own personal expenses, such as his children’s college 
tuition, his tax liabilities, food, and payments to an ex-wife. 

• Rather than investing in safe stock purchases, as he represented to 
clients, Corbman engaged in ruinous day trading of stock options, 
incurring massive losses.   

• When repayment of the loans came due, Corbman falsely 
represented that he had earned his clients substantial profits and 
encouraged them to renew the loans for the following year and 
even to inject additional funds.  

• As part of this process, Corbman falsely reassured clients that their 
money was safe, when he had, in fact, already lost all or almost all 
of their funds. 

 

FIRST CLAIM FOR RELIEF 
Violations of Section 10(b) of the Exchange Act and Rule 10b-5 Thereunder  

60. The Commission re-alleges and incorporates by reference paragraphs 1 through 

59. 

61. By engaging in the conduct described above, Corbman, in connection with the 

purchase or sale of securities, directly or indirectly, by the use of means or instrumentalities of 

interstate commerce, of the mails, or of the facilities of a national securities exchange, knowingly 

or recklessly: (a) employed one or more devices, schemes, or artifices to defraud; (b) made one 

or more untrue statements of material fact or omitted to state one or more material facts in order 

to make the statements made, in light of the circumstances under which they were made, not 

misleading; and/or (c) engaged in one or more acts, practices, or courses of business which 

operated or would operate as a fraud or deceit upon other persons. 

62. Corbman thus violated, and unless restrained and enjoined will again violate, 

Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 

240.10b-5]. 

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SECOND CLAIM FOR RELIEF 
Violations of Section 17(a) of the Securities Act 

63. The Commission re-alleges and incorporates by reference paragraphs 1 through 

59. 

64. By engaging in the conduct described above, Corbman, in the offer or sale of 

securities, directly or indirectly, by the use of means or instruments of transportation or 

communication in interstate commerce or by use of the mails: (a) knowingly, recklessly, or 

negligently employed one or more devices, schemes, or artifices to defraud; (b) knowingly, 

recklessly, or negligently obtained money by means of untrue statements of material fact or 

omissions to state material facts necessary in order to make the statements made, in light of the 

circumstances under which they were made, not misleading; and/or (c) knowingly, recklessly, or 

negligently engaged in one or more transactions, practices or courses of business which operated 

or would operate as a fraud or deceit upon the purchaser. 

65. Corbman thus violated, and unless restrained and enjoined will again violate, 

Section 17(a) of the Securities Act [15 U.S.C. § 77q(a)]. 

PRAYER FOR RELIEF 

WHEREFORE, the Commission respectfully requests that the Court enter a Final 

Judgment: 

I. 

Permanently enjoining Corbman from violating Section 17(a) of the Securities Act [15 

U.S.C. §77q(a)], Section 10(b) of the Exchange Act [15 U.S.C. §§ 78j(b)], and Rule 10b-5 

thereunder [17 C.F.R. § 240.10b-5]. 

II. 

Ordering Corbman to disgorge all funds received, directly or indirectly, from his illegal 

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conduct. 

III. 

 Permanently restraining and enjoining Corbman from directly or indirectly, acting as or 

being associated with any broker, dealer or investment adviser. 

IV. 

Granting such other and further relief as the Court may deem just and appropriate. 

JURY DEMAND  

 Pursuant to Rule 38(b) of the Federal Rules of Civil Procedure, the Commission requests 

that this case be tried to a jury. 

 
 
 
 
Dated: September 29, 2025 

Respectfully submitted, 
 
SECURITIES AND EXCHANGE COMMISSION 

 
By:  /s/ Eugene N. Hansen  
Eugene N. Hansen (VSB No. 48357)  
Securities and Exchange Commission 
100 F Street, NE 
Washington, DC 20549-5985 
Tel:  (202) 551-6091 
Fax: (202) 772-9292 
Email:  [email protected] 
 
Gregory R. Bockin 
Judson Mihok 
Spencer Willig 
Kingdon Kase 
 
Securities and Exchange Commission 
1617 JFK Boulevard, Suite 520 
Philadelphia, PA 19103 
Tel:  (215) 597-3100 
Email: [email protected] 
 
Attorneys for Plaintiff 

 

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