Written by The White Law Group• January 9, 2023• 1:25 pm• Broker Investigations, FINRA SEC Sanctions

Austin Dutton, Newbridge, New FINRA Complaint

Broker Austin Dutton Suspended after 30 Customer Complaints

The White Law Group continues to investigate potential claims involving financial advisor Austin Dutton and his former employer Newbridge Securities. If you have suffered losses investing with Austin Dutton, the securities attorneys at the White Law Group may be able to help you.

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Financial Advisor Austin R. Dutton Jr. (CRD#: 2739167) has a staggering number of customer complaints filed against him – 30 with three currently pending, according to his broker profile at BrokerCheck.org. Allegations include unsuitability, negligence and misrepresentation, among others.

Securities Regulators file Complaint Charging Austin Dutton

On January 5, 2023, FINRA filed a complaint alleging that from May 2014 to February 2020, Austin R. Dutton, Jr. made unsuitable recommendations to 10 customers, advising them to invest over $1.2 million in alternative investments. These investments reportedly included non-traded real estate investment trusts (REITs), non-traded business development companies (BDCs), structured products, and other illiquid securities, all of which were speculative and carried high risks.

Despite the customers’ lack of experience in speculative, complex investments, Dutton allegedly suggested they allocate a significant portion of their retirement savings into these investments. Most of these customers were either retired or approaching retirement and relied on their savings for income, making them financially unsuitable for the risks associated with such investments.

Dutton’s alleged recommendations led to unsuitable concentrations of the customers’ net worth and investable assets in speculative and illiquid securities, which contradicted their investment profiles, objectives, financial situations, risk tolerances, and experiences.

By recommending unsuitable investments to these customers, Dutton allegedly violated FINRA Rules 2111 and 2010. Additionally, while associated with Newbridge Securities Corporation, he purportedly falsified information related to the customers’ net worths, risk tolerances, and investment objectives on 32 documents. The intention was purportedly to bypass supervisory oversight and enable these unsuitable investments.

Dutton’s allegedly failed to respond to FINRA’s requests in April, May, May-June, September-October 2022, and May-July 2023 which reportedly violated FINRA Rules 8210 and 2010.

FINRA Violations

On October 9, 2023, The Financial Industry Regulatory Authority (FINRA) reportedly made a preliminary determination to recommend that additional disciplinary action be brought against Dutton. According to Wells Notice examination #20180591784, FINRA is alleging violations of FINRA Rules 8210 and 2010 for failure to timely respond to FINRA’s requests for information and documents.

FINRA launched its initial investigation on March 29, 2021, alleging violations of FINRA Rules 2111 and 2010; and violations of FINRA Rules 4511 and 2010. Dutton has reportedly been suspended twice. In July 2023, FINRA suspended Dutton indefinitely after he “failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.”

According to various reports, Dutton’s customer were reportedly Philadelphia city employees, including firefighters and police officers. He reportedly held promotional events for the police union, Philadelphia Fraternal Order of Police (FOP 5); and for firefighter members of the International Association of Fire Fighters (IAFF – Local 22). He also reportedly marketed to the Philadelphia police union.

In July 2017, Dutton was reportedly fined $200,000 for allegations of “dishonest or unethical practices in the securities business,” according to the Pennsylvania Department of Banking and Securities. The Pennsylvania state regulator also reportedly fined Newbridge Securities $499,000 for failing to supervise a broker in connection with sales of structured products to his clients in the state.

FINRA BrokerCheck – Austin Dutton

According to his broker profile, Austin Dutton was affiliated with the following firms during his career in the securities industry, among others:

05/27/2020 – 01/07/2022, AMERICAN TRUST INVESTMENT SERVICES, INC. (CRD#:3001), Doylestown, PA,
05/22/2019 – 06/04/2020, PRIMEX (CRD#:29394), NEW YORK, NY
07/21/2017 – 09/07/2017, CENTER STREET SECURITIES, INC. (CRD#:26898), DOYLESTOWN, PA
08/08/2007 – 08/10/2017, NEWBRIDGE SECURITIES CORPORATION (CRD#:104065), DOYLESTOWN, PA

The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.

FINRA BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify whether a broker or brokerage firm is registered with FINRA, as well as to review their employment history, licensing status, and any regulatory actions or complaints filed against them.

Potential Lawsuits to Recover Investment Losses

Brokerage firms are required to properly supervise their advisors. They must ensure that those advisors are complying with applicable FINRA rules and regulations. If it can be demonstrated that Austin Dutton’s former employers failed to properly supervise him, the firm may be held responsible for the losses in a FINRA arbitration claim.

If you are concerned about your investments with Austin Dutton and Newbridge Securities and would like a free consultation to discuss your litigation options, please call The White Law Group at 1-888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.

For more information on The White Law Group, visit WhiteSecuritiesLaw.com.

To learn more about the firm’s investigation, please see:

Pennsylvania Fines Broker Austin Dutton $200,000 and Newbridge Securities sued for Unsuitable Investments