Brett Butler Allegedly Took Undisclosed Loans

Brett Butler (CRD# 4260239[1]), formerly a broker registered with Pruco Securities, took undisclosed loans from his customers, according to a disciplinary action. MDF Law is investigating the former Evansville, Illinois-based financial professional for similar conduct. Former clients with concerns about their accounts should contact us for a free consultation with an attorney.

More information about Mr. Butler’s professional history follows below. This post is sourced from his BrokerCheck record, a Financial Industry Regulatory Authority profile reviewed on November 20, 2024.

Sanction Concerns Customer Loans

On October 23, 2024, FINRA released a Letter of Acceptance, Waiver, and Consent (# 2022077235401[2]) outlining its disciplinary action against Mr. Butler. Between 2016 and 2020, the Letter alleged, he took a total of $1.175 million in loans from five customers at his member firm. He did not disclose the loans to his firm, nor did he received its approval, per FINRA. He took one of the five loans from an immediate family member, but failed to disclose it or receive approval, per firm rules. Finally, the Letter alleged that he falsely attested on five firm questionnaires that he had not taken loans from customers.

Brett Butler Suspended for 5 Months

FINRA concluded that Mr. Butler’s alleged loans violated two industry rules. One is FINRA Rule 3240, which requires that brokers seek and obtain firm approval to take loans from their customers. The other is FINRA Rule 2010, which requires that brokers observe high standards of commercial honor. As a result of these findings, FINRA suspended Mr. Butler from associating with any member firm for five months. It also ordered him to pay a fine of $5,000.

Firm Settled 2013 Investor Dispute

On July 5, 2013, an investor lodged a dispute alleging that Mr. Butler conducted unauthorized withdrawals. The claim alleged additionally that he “conspired” with the customer’s father and co-trustee to conceal the withdrawals. His former member firm settled the dispute for $120,000.

FINRA: Broker Last Based in Evansville, Illinois

Mr. Butler began his career as a broker in 2000, when he registered with IDS Life Insurance. He remained at the firm until 2002, when he departed for ONB Investment Services. He left ONB in 2005 for AllState Financial Services’ office in Evansville, which he left in 2022 for Pruco Securities’ office in the same city. He departed Pruco in October 2024, following his suspension by FINRA. With 23 years of experience as a broker, he has completed three industry exams, including the Series 66 and the Series 7. 

MDF Law Advocates for Investors

Former Brett Butler clients with concerns about their accounts may be able to recover lost funds. Call MDF Law[4] to discuss whether a FINRA arbitration proceeding is appropriate for your case. Our team has proven experience recovering millions in losses for our clients, and we currently offer free consultations to investors across the US. Your window to file a claim may be limited, so call 800-767-8040 to chat with a lawyer today.