FINRA Issues Wells Notice to Advisor Austin Dutton
From the desk of Jim Eccleston at Eccleston Law
Austin Dutton, a seasoned Philadelphia-area advisor, received a Wells Notice from the Financial Industry Regulatory Authority Inc. (FINRA). The notice signifies FINRA's intent to bring a formal disciplinary action against Dutton for alleged violations of industry regulations concerning the turnover of information and documents.
InvestmentNews reports that Dutton has accumulated over 36 disclosure items on his BrokerCheck report, including customer complaints and investigations, and has a history of regulatory scrutiny. The Pennsylvania Department of Banking and Securities fined him $200,000 in 2017 for "dishonest or unethical practices" related to unsuitable security recommendations to clients.
In addition to regulatory sanctions, Dutton faces legal challenges from investors. Earlier this year, he lost an arbitration claim of $43,645 to a client over sales of GWG Holdings Inc. L Bonds. Despite this, Dutton has not paid the arbitration award, drawing further criticism from attorneys representing affected investors.
GWG Holdings, which filed for Chapter 11 bankruptcy protection in April 2022, sold bonds backed by life settlements through advisors like Dutton.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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