An Ashburn, Virginia, financial scammer was sentenced Thursday to three years in prison for fraud after federal prosecutors say he duped clients out of millions of dollars.
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An Ashburn, Virginia, financial scammer was sentenced Thursday to three years in prison for fraud after federal prosecutors say he duped clients out of millions of dollars.
In addition to his prison time, Andrew Corbman, 53, must pay $4.15 million in restitution.
According to the U.S. Attorney’s Office, Corbman worked for several years with two individuals and two couples who loaned him money believing he would invest the funds and earn significant returns.
The clients were unaware, however, that Corbman in 2016 was suspended and permanently barred by the Financial Industry Regulatory Authority from acting as a financial advisor. He had also filed for bankruptcy in 2015.
“Through false claims of investing success, Corbman induced his Clients to loan him up to $4.2 million, promising to invest or continue investing the money in stock market options trading,” the U.S. Attorney’s Office said in a news release. “Corbman promised to repay the loans at high rates of return, as much as a 30% annual interest rate, plus a share of his own trading profits.”
According to court documents, Corbman was affiliated with a national estate planning company through which he obtained access to individuals interested in estate planning and setting up trust vehicles. Prosecutors said Corbman offered financial advice to clients and potential clients, including assisting them with long-term financial planning such as trusts, annuities and life insurance.
Corbman suggested the clients could improve their investment returns if they loaned him money or rolled over existing loans they had made to him.
The Ashburn resident misrepresented his past trading performance to induce the clients to invest or to reinvest what he owed them when the loans came due in the form of a new loan, prosecutors said. Corbman provided at least two of his potential clients a document he claimed showed his 2021 investment results.
In late 2022 and early 2023, when Corbman’s creditors demanded repayment of their expired loans agreements, Corbman indicated to his clients that he was unable to repay the loans due to unanticipated trading losses, according to prosecutors. Corbman ultimately filed for bankruptcy, seeking to discharge over $4 million in losses he had inflicted on his clients.
As a result of Corbman’s scheme, at least one victim incurred substantial financial hardship, including having to mortgage a home, postpone retirement and seek employment at an advanced age, the release stated.
