Sagepoint Financial’s Cynthia Komarek barred by FINRA and is the subject of four customer complaints.
Merrill Lynch employed Ms. Cynthia Komarek from 1991- 2008. She then became registered with Wells Fargo Advisors from 2008-2017 and then moved to Sagepoint Financial in 2017, being terminated by Sagepoint in 2020.
The Legal Complaints
During her tenure in the securities industry, Ms. Cynthia Komarek was the subject of four separate customer complaints.
- The first complaint was back in 1999 regarding the sale of a variable annuity, in which the client alleged that Ms. Komarek failed to disclose material information about the product.
- More recently, in August 2020, a client alleged that Ms. Komarek recommended an unsuitable investment not approved by her brokerage firm. This complaint turned into a FINRA arbitration and was settled by Sagepoint for $1,250,000.
- A subsequent complaint filed the same month again turned into a FINRA arbitration and was settled by Sagepoint for $625,000.
- In June of 2023, a new complaint was filed alleging that Ms. Komarek participated in selling an outside and unapproved investment. This complaint is listed as currently pending.
Cynthia Komarek Terminated
In August 2020, Ms. Komarek was terminated by Sagepoint Financial for recommending an unapproved outside investment and money manager. This termination led to an investigation by FINRA, and Ms. Komarek was subsequently barred by FINRA in 2021.
A Breach of Duty
In the securities industry, a breach of duty is when a stockbroker or agency fails to uphold their fiduciary responsibilities towards their clients. A stockbroker’s fiduciary duty primarily involves acting in the best interests of their clients. It requires brokers to prioritize their clients’ needs over their own, provide complete and fair disclosures of all material facts, and avoid conflicts of interest.
For instance, a broker must recommend suitable investments that align with a client’s financial goals, risk tolerance, and investment knowledge. If a broker recommends an unsuitable or unapproved investment, as was the case with Ms. Komarek, it constitutes a breach of duty.
Moreover, a broker has a duty of loyalty, which means they must act in good faith and put the client’s interest before their own or the firm’s. If a broker recommends an investment primarily for personal gain or commissions, it would breach this duty.
Lastly, the duty of care requires a broker to use their knowledge, skills, and diligence when providing investment advice, including monitoring investments and market changes. If a broker fails to do so, they breach their duty of care.
What Does It Mean to be Barred by the FINRA?
Being barred by the Financial Industry Regulatory Authority (FINRA) denotes the most severe sanction that can be imposed on a securities industry member, such as a stockbroker like Cynthia Komarek. It means that the individual is permanently prohibited from associating with any FINRA member firm in any capacity.
Roles as a broker-dealer, investment advisor, or even in a clerical or administrative function are prohibited. The barring is essentially a professional banishment within the securities industry and is typically the result of severe violations of FINRA rules or federal securities laws. It protects investors by removing individuals who have demonstrated an inability to comply with the necessary standards of practice from the securities industry.
Suffered Losses from Cynthia Komarek? Contact Oakes & Fosher
If you or someone you know had business dealings with Ms. Komarek that resulted in a loss of some or all of your investment, please contact the attorneys at Oakes & Fosher, LLC. Our FINRA arbitration lawyers serve investors nationwide and handle the representation on a contingency fee basis. This means that if you do not recover any of your losses, you don’t pay anything in attorney fees.
Please call now for a no-cost consultation. Oakes & Fosher has tried and won more cases in the last 20 years on behalf of clients in FINRA arbitration than any other law firm in the country.
