FINRA fined and suspended LPL Financial broker Brenton Edward Ditto for recommending a 95-year-old invest in a complex product called Government National Mortgage Association (GNMA) Support Class Bonds. FINRA alleged the recommendation (and purchase) was not been in the customer's best interest, violating the industry's Regulation Best Interest ("Regulation BI").
Discharged by LPL Financial in August 2025, Brenton Ditto (CRD #4779103) purportedly recommended his elderly client purchase GNMA support class bonds that were part of a Real Estate Mortgage Investment Conduit, a mortgage backed security that pools mortgage loans. FINRA classifies this as a complex product, which means that brokers must consider several factors in determining whether the product is suitable for a particular customer.
According to Regulation BI, the broker must consider the client's investment profile, including customer age, risk tolerance, and liquidity needs.
FINRA wrote that Ditto failed to review the GNMA prospectus documents and failed to take into account risk factors associated with the support class bonds, which could have further harmed his customer. For instance, the customer's investment objective was "income with capital appreciation," which the report indicated was the most conservative investment objective. The customer also did not have experience with fixed income investments.
Investigators thus concluded that Ditto recommended the GNMA support class bonds without a reasonable basis to believe they were in his customer's best interest, a violation of Regulation BI.
Ditto's Brokercheck report discloses the settlement of a 2023 dispute involving an allegation of an unsuitable recommendation related to a government debt security.
If you invested with former LPL Financial broker Brenton E Ditto or with any investment adviser or brokerage firm whose unsuitable recommendations not in your best interest have resulted in losses or otherwise proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.