Pennsylvania Broker Fined $200,000 for Selling Unsuitable Investment
Pennsylvania stockbroker Austin Dutton has reportedly been fined $200,000 by the Pennsylvania Department of Banking and Securities for selling at least one customer an unsuitable investment.
“Dutton recommended the purchase of a security to at least one customer without reasonable grounds to believe the transaction was suitable for the customer,” according to a recent FINRA report.
According to a recent FINRA BrokerCheck report, Austin Dutton allegedly engaged in unethical practices by advising a client to buy a security even though based on reasonable grounds, it was not considered a suitable investment for the client.
The $200,000fine was issued by FINRA on July 24, 2017.
Austin Dutton is currently registered with the brokerage firms Newbridge Securities Corporation and Center Street Securities Inc.
What Is an Unsuitable Investment?
A stockbroker who recommends an unsuitable investment to a customer may be liable for stockbroker misconduct. Every investor’s financial needs and goals are unique, and stockbrokers must take the individual investor’s circumstances into consideration before recommending an investment.
Therefore, the stockbroker needs to adequately research the investment before recommending it to a customer to determine whether it is a suitable or an unsuitable investment.
There are many factors that determine the appropriateness of an investment for a particular customer, including the customer’s:
- Investment experience
- Risk tolerance
- Financial situation
- Investment goals
- Anticipated future needs
If a stockbroker fails to consider these factors when making an investment recommendation, he or she may be liable for selling an unsuitable investment. Stockbrokers have a fiduciary duty to their customers. If they fail to make proper recommendations after researching an investment and considering the customer’s unique circumstances, and the customer experiences losses as a result of the unsuitable investment, the customer may be eligible to take legal action against the stockbroker.
Did a Stockbroker Sell You an Unsuitable Investment?
If a stockbroker recommended an investment that was not suitable for your circumstances, you may have a legal claim. The stockbroker misconduct lawyers at Meyer Wilson have extensive experience investigating claims of unsuitability and may be able to help you fight to secure compensation. Contact us or fill out an online form today to schedule a free and confidential case evaluation.