Former Newbridge Securities Corporation Financial Advisor Austin Dutton Jr. Fined $200,000 for Unsuitable Recommendations
Posted on Tuesday, September 19th, 2017 at 9:34 am
Erez Law is currently investigating former Newbridge Securities Corporation financial advisor Austin Dutton Jr. (CRD# 2739167) regarding unsuitable recommendations. Dutton has been registered with Center Street Securities, Inc. in Doylestown, Pennsylvania since July 2017. Previously, he was registered with Newbridge Securities Corporation in Doylestown, Pennsylvania from 2007 to 2017.
In July 2017, the Pennsylvania Department of Banking and Securities sanctioned Dutton to $200,000 in civil and administrative penalties and fines, alleging that he engaged in dishonest or unethical practices by recommending the purchase of a security to at least one customer without reasonable grounds to believe that the transaction would be suitable for the customer.
Additionally, Dutton sold non-traded real estate investment trusts (REITs) managed by American Realty Capital (ARC), now AR Global, which were sold to police officers and city employees in Philadelphia. According to InvestmentNews, “The accounting scandal at the REIT, ARCP, resulted in its former chief accounting officer, Lisa McAlister, pleading guilty last summer to securities fraud. Last month, the ex-chief financial officer of ARCP, Brian Block, was found guilty of securities fraud in a jury trial in New York.”
Dutton has been the subject of two customer complaints between 2004 and 2015, one of which was closed without action, according to his CRD report:
April 2015. “Claimant alleges misrepresentations and omissions, breach of fiduciary duty, negligence, breach of contract and failure of supervision.” The client sought $111,912 in damages and the case was settled for $14,999.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Newbridge Securities Corporation may be liable for investment or other losses suffered by Dutton’s customers.
Erez Law represents investors in the United States for claims against former Newbridge Securities Corporation financial advisor Austin Dutton Jr. regarding unsuitable recommendations. If you were a client of Newbridge Securities Corporation or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.