Attorney General Kathy Jennings has secured a six-month suspension for a former Delaware investment adviser who accessed the financial account information of former clients while unregistered. The Investor Protection Unit, Delaware's state securities regulator, received a complaint from a former client of Robert Brandon Prettyman. Prettyman, an unregistered investment advisor previously suspended for making false statements to regulators and operating without registration, was alleged to have accessed current investment account information even after the client terminated their relationship.
The investigation revealed that Prettyman had opened a portal with eMoney Advisory, LLC while he was registered as an investment adviser. This portal allowed him to view client information after accounts were linked. Despite his suspension in Delaware, the portal remained active, enabling Prettyman to access and view but not transact in current account information of former clients.
Jennings emphasized the importance of trust in fiduciary relationships: “Investors’ financial data are some of the most important and private information they maintain electronically... Financial professionals absolutely should not be viewing personal financial information when the client relationship had been ended, while suspended, or while unregistered,” she stated. “Protecting investors from this type of conduct is at the core of investor protection.”
Following a preliminary investigation into the complaint, the Unit issued a Summary Order to Cease and Desist against Prettyman on May 3, 2024. A more comprehensive investigation led to an Administrative Complaint filed on August 12, 2024. The settlement resolves both actions.
The Unit advises investors to verify the registration status of their financial professionals through brokercheck.finra.org and adviserinfo.sec.gov. They also urge caution regarding third-party data aggregators used by financial professionals and will continue reviewing these practices concerning securities regulation and investor protection.