April 7, 2026
ChapmanAlbin is investigating John Richard Brodacki III (CRD 4384857), a Massachusetts investment adviser who operated through his firm, Castle Hill Financial Group, LLC, out of Longmeadow, Massachusetts. In April 2026, the Securities and Exchange Commission filed a civil complaint in federal court alleging that Brodacki and Castle Hill misappropriated approximately $1.68 million from at least 18 advisory clients between 2018 and 2025, many of whom were elderly, retired, or seriously ill. According to the SEC’s complaint, Brodacki persuaded clients to send investment funds directly to Castle Hill by promising to invest in notes, bonds, certificates of deposit, and other securities on their behalf — and instead used those funds for his own personal expenses, including vacations, club memberships, tuition for family members, and home improvements. The SEC further alleges that the scheme had hallmarks of a Ponzi operation, with some client repayments funded by other clients’ money, and that Brodacki provided at least one client with fabricated account statements showing investments that did not exist. Brodacki died on or about March 23, 2026; the SEC’s lawsuit names his estate and Castle Hill as defendants. This page is based on public records including the SEC’s civil complaint (Case 3:26-cv-30055, D. Mass.) and FINRA BrokerCheck.
If you were a client of John Brodacki or Castle Hill Financial Group and transferred funds outside of your regular brokerage account, this page explains what the public record shows and what options may be available to you.
CRD: 4384857
Most recent registered firm: Bay Colony Advisory Group, Inc. (d/b/a Bay Colony Advisors) — Concord, MA (terminated July 11, 2025)
Advisory firm: Castle Hill Financial Group, LLC — Longmeadow, Massachusetts
SEC IAPD: View John R. Brodacki III on SEC IAPD
Primary concern: Alleged misappropriation of approximately $1.68 million from 18 advisory clients; alleged Ponzi scheme characteristics; fabricated account statements
Regulatory action: SEC civil complaint filed April 2, 2026 (Case 3:26-cv-30055, D. Mass.); SEC seeks disgorgement, prejudgment interest, and civil penalties
Status: Brodacki deceased as of approximately March 23, 2026; Castle Hill Financial Group involuntarily dissolved December 31, 2025
John Richard Brodacki III (CRD 4384857) worked in financial services beginning in 2001, with earlier broker registrations at American Express Financial Advisors Inc. and IDS Life Insurance Company. From April 2005 through May 2017, he was registered as a broker with Equity Services, Inc. in Longmeadow, Massachusetts. After leaving Equity Services, he worked as a Senior Financial Advisor and investment adviser representative at Bay Colony Advisory Group, Inc. (d/b/a Bay Colony Advisors) in Concord, Massachusetts, operating through Castle Hill Financial Group as a doing-business-as entity under the registered adviser. He was not registered as a broker-dealer representative during the period covered by the SEC’s complaint. Investors can review his full registration and disclosure history on FINRA BrokerCheck; his record as an investment adviser representative is maintained separately by the SEC at adviserinfo.sec.gov.
On July 11, 2025, Bay Colony Advisory Group discharged Brodacki after an internal investigation concluded he had improperly received client funds directly into a Castle Hill account. That termination is reflected in his BrokerCheck record. Even after his termination, according to the SEC complaint, Brodacki and Castle Hill continued to solicit and accept client funds through December 2025, and at least one client was misled about the reason for his departure from the registered adviser.
On April 2, 2026, the SEC filed a civil complaint in the United States District Court for the District of Massachusetts against the Estate of John R. Brodacki III and Castle Hill Financial Group, LLC. The complaint alleges violations of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, covering intentional and negligent fraud by investment advisers. The SEC is seeking disgorgement of ill-gotten gains plus prejudgment interest from both the Estate and Castle Hill, a permanent injunction against Castle Hill, and civil monetary penalties against Castle Hill.
According to the SEC’s complaint, Brodacki ran a straightforward but damaging deception. His clients had accounts at a legitimate custodial brokerage firm, where their assets were properly held and managed. On top of that relationship, Brodacki persuaded at least 18 of those clients to send additional money directly to Castle Hill’s bank account, telling each of them he would use those funds to make investments on their behalf — high-yield notes, bonds, certificates of deposit, private equity, or other opportunities he described as favorable.
The SEC alleges he did no such thing. Bank records cited in the complaint show that virtually none of the clients’ money was used to make investments. Instead, the funds were spent on Brodacki’s personal expenses: multiple vacations, an exclusive club membership, tuition payments for family members, home improvement contractors, dining and entertainment, and cash withdrawals. Some client funds were used for Castle Hill’s own business expenses, including rent and technology costs.
For at least one client, the complaint alleges Brodacki went further and provided fabricated account statements showing the purported value of investments that never existed, with values that appeared to grow over time. That client had sent $100,000 expecting it to be invested for a family member’s benefit.
The SEC also alleges the repayment pattern fits the structure of a Ponzi scheme. Of the approximately $1.845 million clients sent to Castle Hill, only about $162,750 was returned, and the complaint indicates that at least some of those repayments came from funds other clients had sent for their own investments.
The conduct alleged in the SEC’s complaint reflects some of the most serious violations an investment adviser can commit. Clients who were persuaded to send money outside their normal brokerage accounts, based on promises of specific investments that were never made, may have claims regardless of whether they received any partial repayment.
Fraud and misappropriation and breach of fiduciary duty are central to what the SEC has alleged here. The complaint’s description of repayments funded by later clients’ money also raises Ponzi scheme liability, which can affect how claims are evaluated and prioritized. Clients who were elderly, retired, or living on fixed incomes and were targeted for these out-of-account transfers may have additional grounds under elder financial abuse theories.
The fact that Brodacki has died and Castle Hill has been dissolved does not necessarily extinguish your options. The SEC is actively pursuing the Estate for disgorgement, and other legal avenues may exist depending on your specific situation.
ChapmanAlbin works on contingency, which means there is no cost to you unless we recover money on your behalf. If you transferred funds to Castle Hill Financial Group at Brodacki’s direction and did not receive those funds back, the first step is a free, no-obligation consultation with one of our attorneys.
According to the SEC’s civil complaint filed in April 2026, Brodacki and Castle Hill misappropriated approximately $1.68 million from at least 18 advisory clients by persuading them to send investment funds directly to Castle Hill and then using those funds for personal and business expenses rather than making the promised investments. The SEC alleges the conduct violated the Investment Advisers Act of 1940 and had characteristics of a Ponzi scheme. These are allegations in a pending civil action; no court has yet issued a final judgment.
Potentially yes. When an individual at the center of an alleged fraud dies, claims may still be pursued against their estate or against related entities. The SEC itself has named Brodacki’s estate as a defendant seeking disgorgement of ill-gotten gains. Separately, depending on the facts of your situation, there may be other legal avenues available. You should speak with an attorney to understand your specific options and any applicable deadlines.
Not necessarily. A partial repayment does not mean your full loss has been addressed, and it does not waive your right to pursue the remainder. In the context of an alleged Ponzi-style scheme, partial repayments are sometimes made using other clients’ funds, which can be relevant to how your claim is evaluated. The key question is whether you suffered a net loss and whether the conduct that caused it gives rise to a legal claim.
That is a core part of what the SEC alleges happened to many of Brodacki’s clients. According to the complaint, most clients had no reason to suspect a problem because they trusted their adviser and were not given documentation of the investments. Some received fabricated statements showing fictitious returns. A lack of obvious warning signs does not prevent you from having a valid claim if you suffered losses as a result of the conduct described in the public record.
ChapmanAlbin works on contingency. If we take your case and do not recover money for you, you owe us nothing. There is no upfront fee and no cost to speak with one of our attorneys in a free initial consultation.
This page is for informational purposes only and does not constitute legal advice. The information presented is based on publicly available records including FINRA BrokerCheck and FINRA disciplinary filings. Past outcomes are not a guarantee of future results. Every matter depends on its own facts and circumstances and should be evaluated individually. This site contains attorney advertising. Any reference to past cases or successes should not be construed as a guarantee of any future outcome.
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