← Broker database 2025-09-18
Carol Lynn Abdo-Brownsberger Suspended Six Months for Inaccurate Statements
According to FINRA, Carol Lynn Abdo-Brownsberger was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in all capacities for six months for making inaccurate statements to her firm and failing to disclose an outside brokerage account.
Abdo-Brownsberger made inaccurate statements to her member firm when seeking approval to serve as trustee of a private foundation funded with assets from a customer's estate. She certified to the firm that she would not have direct or indirect control over investment decisions for the foundation. However, she opened a brokerage account at another FINRA member for the foundation, where she had control over and made investment decisions on the foundation's behalf.
She also certified that her role as trustee did not arise out of a firm customer or third-party service provider relationship. In fact, she used the foundation to receive money left by a customer. Additionally, she failed to obtain prior written consent from her firm to open the brokerage account at another firm and failed to disclose the account until more than five months later.
Abdo-Brownsberger also falsely represented in an attestation and compliance questionnaire submitted to the firm that she had no undisclosed outside brokerage accounts.
This case highlights the importance of accurate disclosures to member firms. Firms rely on their representatives' attestations to ensure compliance with regulatory requirements. When representatives provide false information, firms cannot properly supervise their activities.
The suspension is in effect from October 6, 2025, through April 5, 2026. Investors who work with representatives should understand that their representatives are required to be truthful with their firms about their activities, and violations of this trust result in significant sanctions.