U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19046 / January 21, 2005
SEC v. J.M. Dutton & Associates, LLC, 2:05 CV 106 (E.D. Calif.)
J.M. Dutton & Associates Consents to Judgment Imposing $25,000 Penalty for Violations of Disclosure Requirements of Securities Act Section 17(b)
The Commission filed a civil action against J.M. Dutton & Associates alleging violations of Section 17(b) of the Securities Act of 1933. The California company provides paid-for stock research reports that it publishes on its website. The Commission alleges that the company published stock research reports without fully disclosing that it received compensation from the issuers who were the subjects of the reports. The company, without admitting or denying the allegations, has consented to issuance of a final judgment imposing a $25,000 civil penalty.
The Commission also ordered the company president, John M. Dutton, to cease and desist from committing or causing any violation or future violation of Section 17(b), based on a finding that he violated Section 17(b) by publishing the research reports without fully disclosing the receipt of compensation from issuers. Dutton agreed to the order without admitting or denying the Commission's findings as to his conduct.