ALAN BARTLETT HARRISON Investment Fraud Investigation: DPP & LP Interests Disclosure Issues

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Investment Fraud Alert: Alan Bartlett Harrison Faces Multiple Customer Disputes Over Direct Participation Program Investments

Investors who have worked with financial advisor Alan Bartlett Harrison (CRD# 1616987) should be aware of his concerning history of customer disputes involving direct investment products. According to FINRA BrokerCheck records, Harrison, currently registered with Concorde Investment Services, LLC in Trussville, Alabama, has been the subject of multiple customer complaints alleging misrepresentation and failure to properly disclose investment risks.

Most alarmingly, Harrison is currently facing two pending customer disputes involving Direct Participation Program (DPP) and Limited Partnership (LP) investments. The most recent complaint, filed in February 2025, alleges breach of fiduciary duty, violation of FINRA rules, breach of contract, and negligence related to a 2019 investment. This FINRA arbitration (Case #25-00282) seeks $125,000 in damages.

These serious allegations suggest a troubling pattern of inadequate disclosure and potentially unsuitable investment recommendations involving complex, illiquid investment products.

Understanding Direct Participation Programs and Limited Partnerships

The investments at the center of the complaints against Harrison are Direct Participation Programs (DPPs) and Limited Partnership (LP) interests. These alternative investments present particular risks that many retail investors may not fully understand:

Key Characteristics of DPPs and LPs:

1. Limited Liquidity: These investments typically cannot be easily sold or redeemed for extended periods
2. Complex Tax Implications: They often have unique tax considerations that can be complicated
3. High Fees and Commissions: They frequently carry significant upfront costs that can reduce returns
4. Lack of Transparency: Many have complex structures that make valuation difficult
5. Speculative Nature: Some involve higher-risk ventures in real estate, oil and gas, or equipment leasing

One of the pending complaints specifically mentions a “DST investment” (Delaware Statutory Trust) and concerns about UPREIT conversion. DSTs are a particular type of tax-advantaged real estate investment commonly used in 1031 exchanges but carrying significant restrictions and risks that must be clearly explained to investors.

Harrison’s Pattern of Customer Disputes

According to FINRA BrokerCheck, Harrison has a history of customer complaints specifically related to disclosure issues:

Current Pending Disputes:

1. February 2025 FINRA Arbitration (Docket #25-00282): A customer alleges breach of fiduciary duty, violation of FINRA rules, breach of contract, and negligence related to a 2019 DPP/LP investment, seeking $125,000 in damages.
2. May 2024 Customer Complaint: A client alleges he was unaware that a DST investment purchased in February 2022 would not convert to an UPREIT within two years as expected. The complaint states the client would not have invested had he known this critical information.

Previous Dispute:

In November 2022, a client alleged Harrison failed to disclose the nature of a 2021 DPP/LP investment. While this complaint was closed with no action in October 2023, the similar nature of the allegation to the current pending disputes suggests a potentially concerning pattern.

Professional Background and Outside Business Activities

Alan Bartlett Harrison has been in the financial services industry since 1987 and currently holds the following licenses:

• General Securities Principal (Series 24)
• General Securities Representative (Series 7)
• Investment Company Products/Variable Contracts Representative (Series 6)
• Uniform Securities Agent State Law (Series 63)

He is currently registered in 27 U.S. states and territories, with his primary business location at Concorde Investment Services, LLC in Trussville, Alabama.

What’s particularly concerning is Harrison’s involvement in outside business activities that could present conflicts of interest:

1. Legacy 1031 (Trussville, AL): Harrison serves as President of this business focused on soliciting 1031 exchange business, which he reports as taking “full time during trading hours.” This raises significant questions about both time management and potential conflicts with his securities business.
2. Home Renovation and Resale: Harrison operates as a sole proprietor in this business, which he reports as taking 6-10 hours per month during trading hours.

The substantial time commitments to these outside businesses—particularly Legacy 1031’s “full time during trading hours” designation—raise serious questions about how Harrison balances these activities with his duties to securities clients.

Red Flags in Harrison’s Investment Recommendations

The pattern of complaints against Harrison reveals several concerning aspects of his investment practice that current and prospective clients should consider:

1. Alleged Failure to Fully Disclose Investment Characteristics

All three recent customer disputes center on allegations that Harrison failed to adequately explain critical aspects of the investments he recommended. In the investment industry, ensuring clients fully understand product features, risks, and limitations is a fundamental obligation.

2. Focus on Complex, Illiquid Alternative Investments

The concentration of complaints around DPPs, LPs, and specifically DST investments suggests Harrison may favor these complex, often high-commission products that typically come with significant liquidity restrictions and risks.

3. Possible Conflict with Outside Business Activities

Harrison’s presidency of Legacy 1031, which specifically focuses on 1031 exchange business, creates a potential conflict with his securities business, particularly when recommending DST investments that are commonly used in 1031 exchanges.

The Critical Importance of Full Disclosure for Alternative Investments

The allegations against Harrison highlight a fundamental issue in the investment advisory relationship: the obligation to fully and fairly disclose all material facts about recommended investments. This is particularly crucial for complex products like DPPs and DSTs.

For DST investments specifically, investors should be clearly informed about:

1. Illiquidity: These investments typically cannot be sold or redeemed early
2. Lack of Control: Investors have limited influence over management decisions
3. Tax Consequences: While designed to provide tax benefits, they come with complex tax implications
4. UPREIT Conversion Possibilities: As highlighted in one complaint against Harrison, any claims about potential future UPREIT conversions (which can offer greater liquidity) must be accurately presented with all limitations and uncertainties clearly explained

The pending complaint regarding UPREIT conversion expectations is particularly telling, as it suggests Harrison may have presented this speculative future possibility as a more certain outcome, allegedly leading the investor to make a decision they later regretted.

Steps for Investors Who Have Worked with Alan Harrison

If you’ve invested with Alan Bartlett Harrison, particularly in DPPs, LPs, or DST investments, there are several important steps you should consider taking:

1. Review Your Investment Documentation

Carefully examine all paperwork related to your investments, including:

• Offering memoranda and subscription agreements
• Account statements showing transactions
• Communications with Harrison about the investments
• Any marketing materials you received

Look particularly for any representations about investment characteristics, risks, expected returns, or future events like UPREIT conversions.

2. Assess Investment Performance and Suitability

Consider whether:

• The investment has performed as represented
• You fully understood all material aspects before investing
• The investment aligned with your stated investment objectives
• Harrison adequately explained all risks and restrictions

3. Document Any Concerns

If you identify potential misrepresentations or omissions:

• Create a detailed timeline of communications
• Note any specific statements that appear misleading
• Gather evidence of any written communications
• Record your understanding of the investment at the time of purchase

4. Consult with a Securities Attorney

If you believe you may have been misled about investment characteristics, an experienced securities attorney can:

• Evaluate the strength of your potential claims
• Explain recovery options through FINRA arbitration
• Help determine appropriate next steps
• Ensure compliance with applicable filing deadlines

Legal Remedies for Inadequate Investment Disclosures

Investors who suffered losses due to inadequate disclosures about DPP and LP investments may have several legal remedies available:

FINRA Arbitration

The primary forum for resolving disputes with registered representatives like Harrison is FINRA arbitration, which offers:

• A typically faster resolution than court litigation
• Arbitrators with industry knowledge
• Potentially lower costs than traditional lawsuits
• The ability to recover actual damages, costs, and in some cases, attorneys’ fees

Potential Recovery

Depending on the specifics of each case, investors may be entitled to recover:

• Direct investment losses
• Opportunity costs
• Trading costs and fees
• Interest
• In cases of serious misconduct, punitive damages

Time Limitations

It’s important to note that strict time limitations apply to investment-related claims:

• FINRA arbitration claims generally must be filed within 6 years of the events
• Some state securities laws have shorter statutes of limitation
• Delaying action could jeopardize your ability to recover losses

Concorde Investment Services’ Supervisory Responsibilities

Brokerage firms have a legal duty to supervise their registered representatives. Concorde Investment Services, as Harrison’s current employer, has responsibilities including:

1. Ensuring representatives make suitable recommendations
2. Monitoring for excessive concentration in complex products
3. Reviewing representatives’ outside business activities for conflicts
4. Confirming adequate disclosures to clients about investment risks

The multiple similar complaints against Harrison raise questions about whether Concorde Investment Services has implemented sufficient supervisory measures, particularly given Harrison’s significant outside business activities.

The Growth and Risks of Alternative Investments Like DPPs and DSTs

The investment products at the center of the complaints against Harrison reflect a broader trend in the financial industry. In recent years, there has been significant growth in alternative investments being marketed to retail investors, including DPPs and DSTs.

While these products can potentially offer benefits like tax advantages and portfolio diversification, they come with substantial risks that must be clearly explained, including:

1. Illiquidity Risk: Many cannot be sold for 7-10 years or longer
2. Valuation Challenges: Their value may be difficult to determine accurately
3. Higher Fees: They often carry significant upfront and ongoing costs
4. Complexity: Their structures can be difficult for average investors to fully understand
5. Tax Consequences: While marketed for tax benefits, they can create unexpected tax liabilities

The pending complaints against Harrison suggest he may have failed to adequately explain these critical risk factors to clients before they invested.

The Risk of DST Investments and UPREIT Conversions

The May 2024 complaint specifically mentioning DST to UPREIT conversion expectations highlights a particularly complex area of alternative investments. Delaware Statutory Trusts (DSTs) are often marketed to investors seeking tax-deferred 1031 exchanges, with some promoters suggesting potential future “UPREIT” conversions (where the property is acquired by a Real Estate Investment Trust) as a liquidity strategy.

However, such conversions:

• Are never guaranteed
• Depend on numerous external factors
• May not occur within any specific timeframe, if at all
• Are subject to unfavorable economic conditions or REIT policies

If Harrison did indeed suggest a two-year UPREIT conversion as likely, as alleged in the complaint, this would represent a serious mischaracterization of this highly speculative possibility.

Protecting Your Financial Interests

Alan Bartlett Harrison’s history of customer disputes involving direct participation programs and limited partnerships should serve as a warning to investors about the importance of fully understanding complex alternative investments before committing capital.

The pending complaints alleging inadequate disclosure about critical investment characteristics highlight how vital it is for financial advisors to clearly explain all material aspects of recommended investments—particularly those with limited liquidity and complex structures.

If you invested with Harrison and have concerns about whether you were fully informed about the nature of your investments, consulting with experienced investment fraud attorneys is a crucial step toward potentially recovering losses and protecting your financial future.

Our attorneys have extensive experience representing investors in cases involving DPPs, LPs, and DST investments, and can help evaluate whether you may have a valid claim for recovery.

Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.