Brenton Ditto Lawsuit Investigation
The White Law Group is investigating potential securities claims involving LPL Financial advisor Brenton E. Ditto (CRD#: 4779103) of Elizabethtown, Kentucky.
Background on Brenton Ditto
According to FINRA BrokerCheck, Ditto is currently registered as both a broker and investment adviser with LPL Financial LLC (CRD#: 6413). He has over 20 years of industry experience and has been registered with five firms since 2004, including Morgan Stanley, PNC Investments, J.J.B. Hilliard W.L. Lyons, and Private Advisor Group. Ditto has been affiliated with LPL Financial since 2014.
FINRA Sanctions – Unsuitable Investment to 95-Year-Old Client
On August 12, 2025, FINRA announced disciplinary action against Ditto for allegedly recommending unsuitable investments to a then-95-year-old customer seeking safety of principal and short-term liquidity.
- Client’s stated goals (Sept. 2021): no principal risk, returns greater than a bank CD, liquidity within one year.
- Recommendation alleged: approximately $71,000 in four support-class Government National Mortgage Association (Ginnie Mae) bonds—products with significant principal repayment risk for the last-in-line class.
- Outcome reported: after interest rates rose, the client received no principal repayments and sustained approximately $19,000 in losses.
Settlement and Penalties
- Customer complaint: filed September 2023 alleging unsuitability; settled for $12,475.77. Ditto reportedly denied wrongdoing, citing business reasons to avoid arbitration costs.
- FINRA findings: violations of Regulation Best Interest and FINRA Rule 2010.
- Sanctions (without admitting or denying): 4-month suspension; $5,000 fine; disgorgement of $402.58 plus interest.
Risks to Investors
Support-class mortgage-backed securities can carry substantial repayment and extension risk, making them inappropriate for investors who need capital preservation and liquidity within a year.
Recovering Investment Losses due to Brenton Ditto
If you suffered losses due to recommendations from Brenton E. Ditto or another LPL Financial broker, you may be able to pursue recovery through FINRA arbitration. Brokerage firms must reasonably supervise their registered representatives and may be liable for resulting losses.
Hiring The White Law Group
The White Law Group has over 20 years of experience representing investors in FINRA arbitration claims against brokerage firms, including LPL Financial. Our attorneys have recovered millions of dollars for wronged investors nationwide. We are a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois, and Seattle, Washington.
Free Consultation
If you have concerns about your investments with Brenton Ditto, please call our offices at (888) 637-5510 for a free, confidential consultation. Visit us online at www.whitesecuritieslaw.com.
FAQs: Brenton Ditto
What is FINRA Rule 2010?
FINRA Rule 2010 requires brokers to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
What is Regulation Best Interest (Reg BI)?
Reg BI is an SEC rule that requires broker-dealers to act in the best interest of retail customers when making recommendations, including addressing costs, risks, and reasonable alternatives.
How can investors recover losses from unsuitable investments?
Investors can often pursue claims through FINRA arbitration, which may result in recovery of losses, interest, and attorneys’ fees depending on the case.
Last modified: August 13, 2025
