FINRA barred Springsteen-Abbott after investigations into misusing client funds and misleading investors.
The Sonn Law Group is investigating allegations that Kimberly Springsteen-Abbott misused client funds. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
Kimberly Springsteen-Abbott (CRD#: 1367633) was accused in 2013 of misusing approximately $345,000 of investor funds to pay for personal expenses, including home renovations, food, and travel among other things.
Also in 2013, Springsteen-Abbott settled a case for $1.5M with the SEC after allegedly misleading private placement investors of the Commonwealth Income & Growth Fund, Inc., about compensation practices. Springsteen-Abbott was subsequently barred by FINRA in 2015.
Springsteen-Abbott appealed the industry bar with FINRA’s National Adjudication Council (“NAC”) but was denied. In their findings, FINRA found that it was not in the public interest and would create an unreasonable risk of harm to the market and investors for Springsteen-Abbott to continue working in the financial industry. Her application for membership continuance was allegedly denied for three reasons.
- FINRA recently barred Springsteen-Abbott and the disqualifying event involved an egregious violation of the securities laws.
- The firm is not capable of independently supervising Springsteen-Abbott, and the heightened supervisory plan it proposed is inadequate.
- Member Regulation argues that Springsteen-Abbott continues to engage in misconduct by impermissibly associating with the firm, despite the bar that currently prohibits her from associating with any FINRA member in any capacity.
FINRA also ordered Springsteen-Abbott to pay $209,000 in disgorgement of ill-gotten gains and a fine of $100,000.
Springsteen-Abbott then appealed the ruling to the U.S. SEC, which determined in February of 2020 that the bar was warranted. The SEC, like FINRA, stated that there were “aggravating factors” that made Springsteen-Abbott’s misconduct “egregious” and that she unjustly enriched herself by misallocating money of various placement funds, causing harm to investors in the process.
The SEC stated that after FINRA began its investigation into Springsteen-Abbott’s activities, she continued to hide her misconduct via false information that she disclosed in order to make her expenses appear justified.
Commonwealth Capital has allegedly put together investments in equipment leases into private placement funds that were sold through independent brokerage firms, raising in excess of $240M. According to Commonwealth Capital’s website, Springsteen-Abbott is still the CEO and chairwoman of the firm. Her husband has taken over her previous role as head of the brokerage firm, Commonwealth Capital Securities Corp.
Contact Us Today
The Sonn Law Group is currently investigating allegations that Kimberly Springsteen-Abbott misused investor money. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.