The Securities and Exchange Commission (SEC) has released a review of Kimberly Springsteen-Abbott’s case. A senior brokerage and private placement executive who was barred from the securities industry by the Financial Industry Regulatory Authority Inc. (FINRA). 

Ms. Springsteen-Abbott, who is also the CEO and chairman of Commonwealth Capital Corp., displayed widespread misconduct involving thousands of dollars of expenses charged to private placement funds — resulting in a $100,000 fine and over $209,000 in disgorgement. 

Commonwealth Capital Corp. is the parent of the wholesaling broker-dealer Commonwealth Capital Securities Corp, who, according to the firm’s BrokerCheck report, is now led by Henry Abbott (the husband of Ms. Springsteen-Abbott.)

Commonwealth CEO Used Investor Money for Personal Expenses 

In 2013, FINRA accused Ms. Springsteen-Abbott of using investors’ money to pay for personal expenses over the course of three years. 

She reached a $1.5 million settlement with the SEC after the agency determined that related private placement funds deceived investors when it came to compensation practices at the funds. 

CEO Filed FINRA Appeal and Lost 

Ms. Springsteen-Abbott subsequently appealed FINRA’s decision to bar her from the brokerage industry to the SEC. While the SEC’s decision upheld the bar, the commission’s review found that FINRA’s fine was unnecessary — even though a review panel already had reduced the original fine to $50,000. 

The commission wrote in its decision that Ms. Springsteen-Abbott’s misconduct was ‘egregious.’ It also added that her actions were unjustified as she enriched herself by misallocating funds and harming investors, finding that Ms. Abbott’s continued association with a FINRA-member firm would endanger the integrity of the markets.

Speak with a Securities Fraud Attorney

Dimond Kaplan & Rothstein, P.A. has vast experience with cases related to securities fraud or stockbroker misconduct. The firm has successfully represented numerous customers who lost money as a result of various forms of broker and brokerage firm misconduct. 

If you are looking for a securities fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. represent individual and institutional investors across the United States who have lost money as a result of securities fraud or stockbroker misconduct. We will aggressively pursue claims to recover your losses or damages.

Contact Dimond Kaplan & Rothstein Today 

Contact a securities fraud attorney at Dimond Kaplan & Rothstein, P.A. to schedule an appointment for a FREE case evaluation. 

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