Austin Richard Dutton Jr. (CRD #2739167, Furlong, Pennsylvania)

January 5, 2024 – Dutton was named a respondent in a FINRA complaint alleging that he recommended customers, most of whom were retired or approaching retirement, purchase illiquid alternative investments without having a reasonable basis to believe that these purchases were suitable for each of the customers. The complaint alleges that the alternative investments were all speculative investments that involved a high degree of risk. But, as they informed Dutton, none of the customers were seeking to make speculative, high-risk investments. Each of the customers had limited (or no) investment experience and none had ever purchased alternative investments. Many of the customers relied on their savings for income and none of the customers were able to financially bear the risks associated with alternative investments. Nevertheless, Dutton recommended that the customers use a significant portion of their retirement savings to purchase alternative investments. Dutton’s recommendations to the customers were unsuitable based on their investment profiles—including their net worths, investable assets, annual incomes, investment objectives, and risk tolerances. Dutton generated more than $72,000 in commissions from these recommendations. The complaint also alleges that Dutton falsified his member firm’s books and records and caused numerous books and records, including new account documents, Direct Business Profile and Agreement forms, Accredited Investor Forms, and Suitability Forms to contain false and inaccurate information regarding certain customers and their suitability profiles and purchases of alternative investments. Dutton falsified the firm’s books and records and caused them to contain false and inaccurate information about his customers’ net worth, risk tolerance, investment objective, and concentration percentage in alternative investments. The complaint further alleges that Dutton failed to respond to FINRA’s requests for information and documents in connection with its investigation into his sale of alternative investments, and in connection with a separate investigation into whether he engaged in a private securities transaction. In addition, the complaint alleges that Dutton failed to timely respond to FINRA’s requests for information and documents in connection with his sale of alternative investments. Dutton responded to the request only after the initiation and nearcompletion of a FINRA Rule 9552 proceeding that would have resulted in his bar from the securities industry if he did not comply. (FINRA Case #2018059178401)