Litigation Releases (The Estate of John R. Brodacki, III and Castle Hill Financial Group, LLC)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26519 / April 2, 2026

Securities and Exchange Commission v. Personal Representative of the Estate of John R. Brodacki, III and Castle Hill Financial Group, LLC, No. 3:26-cv-30055 (D. Mass. filed Apr. 2, 2026)

SEC Charges Estate of Massachusetts Investment Adviser and his Company for Allegedly Breaching Fiduciary Duties and Misappropriating Client Funds

On April 2, 2026, the Securities and Exchange Commission charged the estate of former investment adviser and Massachusetts resident John R. Brodacki, III and his Massachusetts-based company, Castle Hill Financial Group, LLC, for Brodacki and Castle Hill allegedly breaching their fiduciary duties to at least 18 of their advisory clients and misappropriating approximately $1.68 million in client funds.

The SEC's complaint, filed in federal district court in Massachusetts, alleges that, from at least June 2018 through September 2025, Brodacki and Castle Hill fraudulently induced their clients - many of whom were elderly, retired or seriously ill - to transfer money to Castle Hill. According to the complaint, Brodacki told the clients that their funds would be used to make investments for their benefit and/or the benefit of their relatives. The complaint alleges, however, that instead of making such investments, Brodacki and Castle Hill used clients' funds largely to pay Brodacki's own personal and business expenses, including lavish meals, membership fees to exclusive social clubs, tuition, and travel; to make payments to other advisory clients; and to make payments to Brodacki's family members. The complaint further alleges that Brodacki and Castle Hill continued to solicit and accept client funds for purported investment advisory services even after the registered investment adviser with which they were associated terminated the relationship in July 2025. According to the complaint, Brodacki died on or about March 23, 2026.

The SEC's complaint charges Brodacki and Castle Hill with violating Sections 206(1) and 206(2) of the Investment Advisers Act of 1940 and seeks disgorgement with prejudgment interest from Brodacki's estate and Castle Hill, and a civil money penalty and permanent injunction against Castle Hill.

The SEC's litigation is being handled by Kevin B. Currid, John Mccann, Heidi M. Mitza, Lou Randazzo, and Kathy B. Shields, all of the SEC's Boston Regional Office.