Kimberly Ann Springsteen-Abbott, a broker at Clearwater, FL based Commonwealth Capital Securities Corp., was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint alleging that she directed the misuse of investor funds to pay for various credit card charges that were not related to legitimate business purposes of the funds. The complaint alleges that the charges relating to the misused investor funds consisted of personal expenses for Ms. Springsteen-Abbott and another individual. The allegedly misused funds totaled at least $344,798.79, and some of the charges have been refunded. The complaint also alleges that in connection with a FINRA examination, Ms. Springsteen-Abbott and her firm provided a false and back-dated document in connection with the documentation provided regarding the credit card charges. By allegedly creating the false and back-dated documentation, Ms. Springsteen-Abbott, of Holiday, Florida, caused her firm to maintain inaccurate books and records.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement a reasonable supervisory system, they may be liable to investors for damages flowing from the stockbroker misconduct. Therefore, investors who have suffered damages due to prohibited activity such as misuse or misappropriation of funds can bring forth claims to recover losses against broker-dealers like Commonwealth Capital Securities Corp., which should monitor their brokers' activities in order to prevent the above described misconduct.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. Please see our Instablog profile (left column) for ways to contact us and get answers to any of your questions about this blog post and/or any related matter.