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

June 24, 2024 – An Office of Hearing Officers (OHO) decision became final in which Dutton was barred from association with any FINRA member in all capacities and ordered to pay to FINRA disgorgement of commissions received in the amount of $65,509, plus prejudgment interest. The sanctions were based on the findings that Dutton recommended customers, most of whom were retired or approaching retirement, purchase illiquid alternative investments without having a reasonable basis to believe such investments were suitable for the customers. The findings stated that Dutton recommended that the customers purchase $1.2 million in alternative investments. These recommendations generated $72,789 in commissions for Dutton and his member firm. Dutton’s recommendations were unsuitable based on the customers’ investment profile, including their net worth, investable assets, annual income, investment objective, and risk tolerance. The findings also stated that Dutton falsified books and records of his firm and caused these books and records to contain inaccurate information about his customers’ net worth, risk tolerance, investment objective, and concentration percentage in alternative investments. Dutton falsified documents, including new account documents, Suitability Forms, Direct Business Profile and Agreements, and Accredited Investor Forms. The findings also included that Dutton failed to respond or timely 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 had failed to disclose his participation in a private securities transaction. In connection with the investigation into Dutton’s sale of alternative investments, Dutton did not respond to the requests until after the initiation and near-completion of an expedited FINRA Rule 9552 proceeding that would have led to a bar from associating with any FINRA member firm if he failed to comply. In connection with the other investigation, Dutton stated in a phone call with FINRA that he would consider responding to this request. Yet Dutton did not request an extension of time to respond, and he failed to respond to the request. Accordingly, FINRA sent out another request stating that Dutton’s failure to respond could result in disciplinary action, including a bar from associating with any FINRA member firm. Dutton left a voicemail with FINRA about the requests yet failed to respond with the requested documents and information. (FINRA Case #2018059178401)

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