The allegations read: Dutton was named a respondent in a finra complaint alleging that he recommended customers purchase illiquid alternative investments without having a reasonable basis to believe that these purchases were suitable. The complaint alleges dutton's recommendations of alternative investments to the customers, most of whom were retired or approaching retirement, were unsuitable based on their investment profiles-including their net worths, investable assets, annual incomes, investment objectives, and risk tolerances. The recommendations generated more than $72,000 in commission for dutton. 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 customers. The records dutton falsified 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 did not respond to finra's requests for information and documents and when he did, dutton did not respond in a timely manner. The information requested was material to finra's investigation of whether dutton made unsuitable recommendations of alternative investments to additional customers. Dutton responded to a request only after the initiation and near-completion of a finra proceeding that would have resulted in his bar from the securities industry if he did not comply. Dutton has subsequently failed to respond to other finra requests for information in connection with a separate investigation into whether dutton engaged in a private securities transaction.
