According to publicly available information, former financial advisors Cynthia Komarek (Komarek, CRD No. 1188714 – a/k/a Cythia Brown Komarek) and Grant Christopher Birkley (Birkley, CRD No. 2933533)—who were both previously affiliated with SagePoint Financial, Inc. (SagePoint), in that firm’s Barrington, IL office—were each recently barred from the securities industry by the Financial Industry Regulatory Authority (FINRA). Specifically, through individual Letters of Acceptance, Waiver & Consent (Komarek AWC; Birkley AWC), under which neither Ms. Komarek nor Mr. Birkley admitted or denied FINRA’s factual findings, the former SagePoint financial advisors each consented to their respective industry bar in connection with their refusal, through counsel, “to produce the information or documents requested” by FINRA Enforcement pursuant to Rule 8210.

Ms. Komarek was a longtime financial advisor with 36 years of industry experience. She entered the securities industry in 1983 and was initially affiliated with now-defunct Oberweis Securities, Inc. Most recently, Komarek was affiliated with Phoenix-headquartered SagePoint from November 2017 until her discharge from employment in August 2020. Mr. Birkley was also a seasoned financial advisor, with 21 years of industry experience. Mr. Birkley was affiliated with SagePoint from November 2017 until his termination of employment in August 2020.

As set forth in the respective AWCs barring Komarek and Birkley from associating with any FINRA-member broker-dealers, an investigation was initiated by FINRA after SagePoint terminated both Komarek and Birkley in August 2020. Specifically, FINRA Enforcement sought information related to allegations that Ms. Komarek and/or Mr. Birkley made referrals to “an outside asset manager without the firm’s approval.” By failing to respond to FINRA’s request for documents and information concerning possible outside business activities, both Komarek and Birkley violated FINRA Rule 8210, in addition to Rule 2010 which requires industry members to “conduct business with high standards of commercial honor” and “maintain just and equitable principles of trade.”

According to FINRA BrokerCheck, both Ms. Komarek and Mr. Birkley are named or otherwise involved in pending customer complaints concerning allegations of “inappropriate involvement in [the] sale of unapproved product.” These claims relate, at least in part, to outside investments in Family Wealth Legacy and the Zolla High Yield Fund.

Under applicable securities laws and FINRA Rules, brokerage firms like SagePoint have a legal obligation to ensure that their registered representatives are adequately supervised. In this regard, brokerage firms must take reasonable steps to ensure that their brokers follow applicable securities rules and regulations, as well as adhere to the firm’s internal policies. In those instances when a brokerage firm fails to adequately supervise its brokers, it may be held liable for losses suffered by investors.

Investors who have suffered losses with Cynthia Komarek, Grant Birkley, or another financial advisor, may contact our office by telephone at (201) 771-1115 or by email at info@gialawgroup.com for a no-cost and no-obligation consultation to learn more about their legal rights. The attorneys at Giarrusso Law Group LLC have extensive experience with handling all manner of claims on behalf of investors who have been victimized by securities fraud or related misconduct.