Kimberly Ann Carson (CRD #5576304, San Jose, California)

January 24, 2024 – An AWC was issued in which Carson was fined $5,000 and suspended from association with any FINRA member in all capacities for three months. Without admitting or denying the findings, Carson consented to the sanctions and to the entry of findings that she obtained a loan of $250,000 from her customer without notifying her member firm of the lending arrangement and without obtaining prior approval for the loan. The findings stated that Carson had a personal relationship outside of their broker/client relationship with the customer. The loan was made pursuant to a promissory note, which was signed by Carson’s husband, and which required monthly interest-only payments at a fixed 10 percent annual rate for a 10-year term. The principal sum was due at the expiration of the 10-year term. The loan amount was deposited into a joint bank account owned by Carson and her husband. Carson made monthly payments to the customer, in accordance with the terms of the promissory note, for nearly two years, until failing to make a timely payment. The following month, Carson resumed making timely payments. Carson repaid the loan in full after the customer commenced litigation against her, her husband and the firm. The suspension is in effect from February 20, 2024, through May 19, 2024. (FINRA Case #2022074541501)