Fired Rep Blew $3M, Stole $4.15M From Heroes for Taxes, Debt!

SEC v. Andrew Scott Corbman — U.S. Securities and Exchange Commission Litigation Release No. 26428, dated December 3, 2025.

The SEC charged Andrew Scott Corbman, a former registered representative and investment adviser, for orchestrating a $4.15 million fraud. From 2019 to 2023, Corbman misled investors, including retired military officers and a federal civil servant, by making false claims about his investment performance and the safety of their funds. He misrepresented substantial returns while experiencing over $3 million in trading losses and misused investor money for personal expenses and high-risk trading.

In Plain English

Imagine someone promising to invest your money and make it grow a lot, like a super-powered piggy bank. This person, Andrew Corbman, told people he was great at investing and that their money was safe and making big profits. But in reality, he was losing a lot of money, more than $3 million, and using the investors' money for himself, like paying his own bills and taxes. He also didn't tell them he had a history of problems, like losing his business license and being banned from the finance world. When people asked for their money back, he couldn't give it to them.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Targeting Investors From 2019 to 2023, Andrew Scott Corbman targeted multiple investors, including retired military officers and a retired federal civil servant, convincing them to invest over $4 million in securities structured as 'Loan Agreements'.
2. False Promises of Returns Corbman misrepresented his investment track record, falsely claiming his past investments generated substantial returns. In reality, his trading losses during this period exceeded $3 million.
3. Concealing Negative History While promoting his supposed professional accomplishments, Corbman failed to disclose critical information: he had filed for personal bankruptcy in 2015, faced numerous customer complaints leading to his employer suspending and terminating him in 2016, consented to a bar from the securities industry in 2016, and lost his Virginia insurance business license in 2019.
4. Misusing Investor Funds Instead of investing the funds as promised, Corbman primarily used the approximately $4.15 million for extremely high-risk trading. He also misappropriated funds to cover personal expenses, including back taxes, credit card debt, and attorney fees for his bankruptcy proceedings.
5. Assuring Investors of Safety Corbman falsely assured investors that their funds were secure and that his investments were generating large returns. This deception discouraged investors from withdrawing their money.
6. Encouraging Reinvestment Investors, reassured by Corbman's false claims of success, often rolled over their principal into new investments and, in some cases, invested additional funds. This included fictitious 'interest' they supposedly earned.
7. Scheme Collapse The fraudulent scheme collapsed in 2023 when Corbman admitted to investors that he could not return their funds and subsequently declared bankruptcy.

The Enforcement Action

On October 3, 2025, the SEC obtained a final judgment against Andrew Scott Corbman, a former registered representative and investment adviser. Corbman was charged with conducting a $4.15 million fraudulent scheme from 2019 to 2023, misleading investors with false statements about his track record, investment risks, and the use of funds. The judgment permanently enjoins him from violating securities laws, prohibits him from acting as a broker or investment adviser, and orders him to pay $4.15 million in disgorgement, which is deemed satisfied by a restitution order in a parallel criminal case.

Named in this action: Andrew Scott Corbman.

Original SEC litigation release ↗ · Browse all cases