Haselkorn & Thibaut has opened an investigation into Elizabethtown, Kentucky financial advisor Brent Ditto following recent regulatory sanctions and investor complaints. If you’ve worked with Mr. Ditto or LPL Financial’s Ditto Financial Group and experienced investment losses, understanding the details of these regulatory actions can help you make informed decisions about your financial future.
Understanding the Recent FINRA Sanctions Against Brent Ditto
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In August 2024, the Financial Industry Regulatory Authority (FINRA) took disciplinary action against Brent Ditto through a Letter of Acceptance, Waiver, and Consent (AWC No. 2023079054101). The core issue involved recommending complex Government National Mortgage Association (GNMA) support bonds to a 95-year-old customer whose investment objectives and experience didn’t align with such products.
Here’s what makes this case particularly concerning for investors:
- Customer Profile Mismatch: The elderly client had conservative investment objectives focused on “income with capital appreciation” and zero experience with fixed income investments
- Ignored Investment Parameters: The customer’s daughter, who held power of attorney, specifically requested investments with no principal risk and liquidity within one year
- Lack of Due Diligence: According to FINRA, Mr. Ditto failed to review the prospectuses and didn’t properly consider the risk factors
- Significant Financial Loss: The customer received no principal repayments and suffered $19,000 in losses
Regulatory Penalties and Their Implications
FINRA’s sanctions against Mr. Ditto were substantial and multifaceted:
| Penalty Type | Details |
|---|---|
| Monetary Fine | $5,000 plus disgorgement |
| Suspension Period | 4 months from associating with any FINRA member firm |
| Violation Found | SEC’s Regulation Best Interest |
These penalties reflect FINRA’s determination that Mr. Ditto violated Regulation Best Interest, a crucial rule requiring financial professionals to act in their clients’ best interests when making investment recommendations.
Additional Investor Complaint and Settlement
Beyond the FINRA sanctions, Mr. Ditto’s BrokerCheck report reveals another concerning detail. In June 2023, an investor filed a complaint alleging unsuitable government bond recommendations while Mr. Ditto was representing LPL Financial. This complaint resulted in a settlement of $12,475.77, suggesting the firm found merit in the investor’s concerns.
Professional Background and Current Status
Understanding Mr. Ditto’s professional background provides context for evaluating your relationship with him:
- Experience: 20 years in the securities industry
- Current Affiliations: Registered with LPL Financial since 2014 (broker) and 2022 (investment advisor), operating as Ditto Financial Group
- Previous Firms: Private Advisor Group, JJB Hilliard WL Lyons, PNC Investments, and Morgan Stanley
- Licenses Held: Series 66, SIE, Series 7, and Series 31
- Geographic Coverage: Licensed in FL, GA, IN, KY, MS, MO, OH, SC, TN, and TX
Red Flags Investors Should Consider
When evaluating whether you may have been affected by similar practices, consider these warning signs:
1. Complex Product Recommendations
Were you sold GNMA support bonds or other complex fixed-income products without a clear explanation of their risks?
2. Misalignment with Your Investment Goals
Did your advisor recommend investments that didn’t match your stated objectives, risk tolerance, or time horizon?
3. Inadequate Risk Disclosure
Were the potential downsides and complexities of your investments thoroughly explained before purchase?
4. Age-Inappropriate Investments
If you’re an elderly investor or managing accounts for elderly family members, were conservative parameters respected?
What This Means for Current and Former Clients
If you’ve worked with Brent Ditto or LPL Financial’s Ditto Financial Group, now is the time to review your investment portfolio and transaction history. The FINRA sanctions and investor complaint settlement demonstrate a pattern that warrants careful examination of your own experiences.
Consider reviewing:
- All government bond or fixed-income investments made through Mr. Ditto
- Whether your stated investment objectives were properly documented and followed
- Any losses you’ve experienced in complex products you didn’t fully understand
- Communications about investment risks and potential downsides
Taking Action to Protect Your Financial Future
Investment losses due to unsuitable recommendations or violations of Regulation Best Interest may be recoverable. The regulatory actions against Mr. Ditto establish a documented history that could support claims by affected investors.
Time limits apply to filing claims, so prompt action is essential. Document gathering, account analysis, and understanding your legal options are critical first steps in protecting your interests.
How Haselkorn & Thibaut Can Help
With over 50 years of experience and a 98% success rate, Haselkorn & Thibaut has recovered millions for investors nationwide. Our team understands the complexities of securities fraud cases and works on a contingency basis—meaning no recovery, no fee.
If you’ve experienced losses while working with Brent Ditto or have concerns about unsuitable investment recommendations, call Haselkorn & Thibaut at 1-888-885-7162 for a free consultation. Our experienced attorneys can review your situation, explain your options, and help you understand whether you have a viable claim for recovering your investment losses.
Don’t let unsuitable investment recommendations jeopardize your financial security. Contact Haselkorn & Thibaut today at 1-888-885-7162 to discuss your situation with a dedicated investment fraud attorney who can help protect your interests and work toward recovering your losses.
