Category Archives: Commonwealth Capital Securities Corp.

Kimberly Springsteen- Abbott Sued by Regulator for Misuse of Investor Funds

The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.

See the FINRA website for current and historical disciplinary actions.

July 2013

Kimberly Ann Springsteen-Abbott (CRD #1367633, Registered Principal, Holiday, Florida) was named a respondent in a 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, which totaled at least $344,798.79. The complaint alleges that the charges relating to the misused investor funds consisted of personal expenses for Springsteen-Abbott and another individual. Some of the charges have been refunded. The complaint also alleges that in connection with a FINRA examination, Springsteen-Abbott and her member firm provided a false and back-dated document in connection with the documentation provided regarding the credit card charges. By creating the false and backdated documentation, Springsteen-Abbott caused her firm to maintain inaccurate books and records. (FINRA Case #2011025675501)

According to FINRA records, Springsteen-Abbott is  currently registered with Commonwealth Capital Securities, Corp. since 4/25/1997.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Five Brokerage Firms Order to Pay Another $10 Million On Non-Traded REIT Sales

As we have previously noted, regulators have already hit broker-dealers for big fines and damages for the sale of non-traded REITs:

  • In May Massachusetts regulators order five firms to pay $6 million for improperly selling non-traded REITs
  • Earlier in 2013 LPL Financial was hit with a $4.8 million order from the Massachusetts securities regulators for failing to train and supervise brokers in connection with the sale of non-traded REITs.

In early September 2013, Massachusetts regulator William Galvin announced a second round of restitution orders, totaling $10.75 million,  against the same five firms: Securities America, Ameriprise Financial, Commonwealth Financial Network, Lincoln Financial and Royal Alliance.

In total, the six firms have agreed to pay up to $21.6 million in restitution and fines of $1.5 million.

According to Galvin, “These investments are popular, but risky. Our investigation showed widespread problems with adherence to the firms’ own policies, as well as the state rule that an investor’s purchase of REITs cannot be more than 10% of that person’s liquid net worth”.

What are non-traded REITs?

Non traded real estate investment trusts (REITS) do not trade on any conventional exchange and were sold with the promise of steady and dependable income, with little warning as to the illiquid nature of the investment and with the hopes of appreciation. Many purchasers believed them to be safe, secure investments similar to bonds. Now many of these investments have ceased making distributions and have plummeted in value. Since they are not traded on any conventional exchange, investors may look only to a secondary market if liquidity is required.

Popular Non-Traded REITs include:

Behringer Harvard (Multifamily, Opportunity I and II)

CNL Lifestyle Properties

Cole Credit Property Trust II and III

Corporate Property Associates 16, 17

Dividend Capital Diversified Property Fund

Healthcare Trust of America

Hines

Inland Diversified

KBS I and II

KBS Strategic

Landmark Apartment Trust

Lightstone Value 

Retail Property of America

TNP Strategic Retail

United Development Fune III and IV

Columbus Property (Wells REIT II)

Wells Timberland

If you believe you were sold a non traded REIT based upon misrepresentations, you may be able to recover damages through FINRA arbitration. Contact us for more information.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

FINRA Files Complaint Vs. Commonwealth Capital Broker Kimberly Ann Springsteen-Abbott

Clearwater, Florida

FINRA filed a complaint against Kimberly Ann Springsteen-Abbott (Case # 2011025675501) alleging that she directed the misuse of more than $344,000 in 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 funds consisted of personal expenses for Springsteen-Abbott and another individual. The complaint also alleges that in connection with a FINRA examination, Springsteen-Abbott and her member firm provided back dated documentation.

According to FINRA records, Springsteen-Abbott is currently registered with Commonwealth Capital Securities of Clearwater, Florida.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870