FINRA Charges Misuse of Investors' Funds by CEO

FINRA, the Financial Industry Regulatory Authority Inc. has filed a complaint against Kimberly Springsteen-Abbott, the owner, chief executive and head of compliance for Commonwealth Capital Securities Corp. This firm, which is the broker-dealer arm of Commonwealth Capital Corp., employs about 22 registered reps and conducts business in private placements and direct investments.

According to the complaint, Kimberly Springsteen-Abbott allegedly misused $345,000 in investors' money between December 2008 and February 2012. She also was allegedly involved in falsifying and backdating a memo accounting for “Disney Tickets” that was given to FINRA staff members while they were conducting an exam in 2011.

The FINRA complaint states that the broker-dealer distributed 13 different equipment leasing funds from 1993 to the present, which raised more than $240 million. Each fund acquires equipment involving information technology, medical technology, telecommunications and other categories. The proceeds from the offerings are invested primarily in equipment that is subject to operating leases with durations of 12 to 36 months.

According to FINRA, Kimberly Springsteen-Abbott “directed the misuse of investor funds to pay for various American Express credit card charges that were not related to legitimate business purposes of the funds.”

FINRA's complaint includes an exhibit of 27 pages of purchases from Ms. Springsteen-Abbott and other company executives. Also, a sexual discrimination suit was filed last year by a former Commonwealth Capital employee, which was since settled, alleged that Springsteen-Abbott and other company executives “were misrepresenting investor return rates and misappropriating investor funds for lavish personal expenses.”

If you or a loved one experienced a financial loss due to your stockbroker or financial advisor’s recommendations, call Soreide Law Group for a free consultation with an attorney at: 888-760-6552.