Last Updated: March 9, 2025
Investors who worked with Keith Morgan (CRD# 3139407) and suffered losses in alternative investments may have recovery options through FINRA arbitration. Recent allegations against Morgan involve claims of inadequate due diligence and failure to disclose risks to investors, potentially leading to significant financial damages.
Key Details About Keith Morgan and the Pending Customer Dispute
Keith Morgan is currently employed with Steward Partners Investment Advisory, LLC in Gainesville, GA, and Steward Partners Investment Solutions, LLC in Dalton, GA. His FINRA BrokerCheck report reveals a concerning customer dispute that investors should be aware of:
- FINRA Arbitration Case Number: 24-01773
- Filing Date: January 15, 2025
- Alleged Damages: $274,000
- Status: Pending
- Investment Product: Alternative investments
- Time Period: September 2010 to 2023
According to the disclosure report, the claim alleges that Morgan’s former employer, UBS Financial Services Inc., “failed to do adequate due diligence on a fund of funds, which counsel alleges was unsuitable for any investor, and as a result all relevant risks were not disclosed to investors.”
Understanding the Alternative Investment Allegations
Alternative investments often carry higher risks and less transparency than traditional investments like stocks and bonds. The current allegations against Keith Morgan highlight several common issues with alternative investment recommendations:
1. Due Diligence Failures
Investment advisors have a fiduciary duty to thoroughly investigate investment products before recommending them to clients. The complaint alleges that UBS Financial Services (where Morgan worked during part of the relevant period) failed to conduct adequate due diligence on a “fund of funds” product.
A fund of funds structure adds layers of complexity and fees, potentially obscuring underlying investments and their associated risks. Proper due diligence would include:
- Analysis of the fund manager’s experience and track record
- Review of the fund’s investment strategy and holdings
- Evaluation of fee structures and potential conflicts of interest
- Assessment of liquidity provisions and exit strategies
2. Suitability Concerns
The claim specifically alleges that the investment was “unsuitable for any investor,” suggesting fundamentally flawed products. FINRA’s suitability rule requires that brokers only recommend investments that align with a client’s:
- Investment objectives
- Risk tolerance
- Financial situation
- Age and retirement timeline
- Investment experience
- Overall financial needs
Recommending unsuitable investments is a serious form of broker misconduct that can lead to significant financial harm for investors.
3. Failure to Disclose Risks
Perhaps most concerning is the allegation that “all relevant risks were not disclosed to investors.” Securities laws and FINRA regulations require full and transparent disclosure of all material risks associated with investment recommendations. When brokers fail to properly disclose:
- Liquidity restrictions
- Fee structures
- Conflicts of interest
- Historical performance data
- Market risk factors
- Potential loss scenarios
Investors are deprived of the opportunity to make fully informed investment decisions, which may constitute securities fraud.
Keith Morgan’s Background and Registration History
Understanding Morgan’s professional history provides important context for investors:
- Current Registration:
- Steward Partners Investment Advisory, LLC (CRD# 283004) since May 2023
- Steward Partners Investment Solutions, LLC (CRD# 1254) since July 2010
- Previous Employment:
- UBS Financial Services Inc. (2007-2010)
- Citigroup Global Markets Inc. (1998-2007)
- Licenses and Qualifications:
- Registered in 11 U.S. states and territories
- Passed 2 principal/supervisory exams
- Passed 3 general industry/product exams
- Passed 2 state securities law exams
Morgan maintains active registrations across multiple states, including Arizona, Arkansas, California, Florida, Georgia, Hawaii, Minnesota, Ohio, Oregon, Virginia, and Washington.
Recovery Options for Investors
If you invested with Keith Morgan and experienced losses related to alternative investments, several recovery paths may be available:
FINRA Arbitration Process
The most common method for recovering investment losses is through FINRA arbitration. This process offers several advantages over traditional litigation:
- Shorter Timeline: FINRA arbitration typically resolves faster than court cases, often concluding within 12-18 months
- Lower Costs: The process is generally less expensive than traditional litigation
- Industry Expertise: Arbitrators typically have securities industry knowledge
- Binding Decision: Awards are final and difficult to appeal
The current claim against Morgan was filed through FINRA arbitration (Case #24-01773), which is the standard procedure for securities disputes.
Potential Claims in Investment Fraud Cases
Investors who suffered losses may have grounds for claims including:
- Breach of Fiduciary Duty: Failure to act in the client’s best interest
- Negligence: Failure to exercise reasonable care in making recommendations
- Misrepresentation/Omission: Providing false information or failing to disclose material facts
- Unsuitability: Recommending investments that didn’t match the client’s objectives and risk tolerance
- Failure to Supervise: Claims against the brokerage firm for inadequate oversight of their representatives
Statute of Limitations Concerns
Investors should be aware that strict time limits apply to investment fraud claims:
- FINRA arbitration claims typically must be filed within six years of the event
- State securities laws may have shorter filing deadlines
- The discovery of fraud may extend some deadlines under certain circumstances
Given that the allegations against Morgan cover activity from September 2010 to 2023, investors who suspect losses should consult with a securities attorney promptly to determine if their claims remain within applicable time limitations.
Red Flags in Alternative Investment Recommendations
To help investors identify potential misconduct before losses occur, watch for these warning signs:
- Promises of “guaranteed” returns or “no risk” investments
- Pressure to make quick decisions or “limited time” offers
- Recommendations that don’t align with your stated investment objectives
- Complex products that you don’t fully understand
- Reluctance to provide written information about investments
- Excessive fees or commissions compared to traditional investments
- Lack of transparency about underlying holdings
- Unexpected illiquidity when attempting to access funds
Protecting Your Financial Future
If you’ve experienced losses while working with Keith Morgan or have concerns about alternative investments in your portfolio, consider these important steps:
- Gather Documentation: Collect all account statements, communications, marketing materials, and notes from meetings
- Consult a Securities Attorney: Speak with an experienced investment fraud attorney who can evaluate your specific situation
- File a FINRA Complaint: Consider reporting concerns to regulatory authorities
- Act Promptly: Don’t delay seeking advice, as statutes of limitations may limit recovery options
- Review Current Holdings: Have an independent financial professional review your portfolio for other potentially unsuitable investments
Free Consultation for Investment Loss Recovery
Our firm specializes in helping investors recover losses due to broker misconduct and unsuitable investment recommendations. We understand the complex nature of alternative investment fraud and have successfully represented clients in FINRA arbitration proceedings against major financial institutions.
If you invested with Keith Morgan at UBS Financial Services, Steward Partners, or any other firm and experienced losses, contact us today for a free, confidential consultation. Our attorneys work on a contingency fee basis, meaning you pay nothing unless we recover money for you.
Don’t let the statute of limitations expire on your potential claims.
Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.
Disclaimer: The allegations referenced in this article are taken from FINRA BrokerCheck records and have not been proven in arbitration or litigation. All individuals are presumed innocent until proven otherwise. This article is for informational purposes only and does not constitute legal advice.
