A former Wells Fargo advisor, has agreed to sanctions for misleading her firm about her role in a client-related foundation. Carol L. Abdo-Brownsberger accepted a $5,000 fine and a six-month suspension without admitting or denying FINRA's findings. The settlement was finalized in a FINRA Acceptance, Waiver and Consent (AWC), as reported by AdvisorHub.

According to FINRA, Abdo-Brownsberger established a foundation in August 2022 to receive a $675,000 bequest from the estate of a client who died in 2021. She allegedly made inaccurate statements to Wells Fargo about her role as trustee and the extent of her control over the foundation's assets. FINRA also found that she opened an outside investment account to manage the foundation's funds without receiving the firm's required approval.

According to AdvisorHub, FINRA determined that Abdo-Brownsberger violated Rule 2010, which requires registered representatives to observe "high standards of commercial honor," by providing false information to her firm. She also violated FINRA Rule 3210, which prohibits advisors from opening or maintaining outside accounts without prior written consent from their employer.

Notably, FINRA did not charge her under rules that prohibit advisors from directly accepting bequests from customer estates. AdvisorHub reports that the settlement also did not clarify how the funds directed to the foundation ultimately were handled.

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