Broker Michael Morrissett Subject to $2,300,000 Unsuitable Hedge Fund Dispute

shutterstock_66745735-300x200The securities attorneys at Gana Weinstein LLP are currently investigating Wells Fargo Clearing Services, LLC (Wells Fargo) broker Michael Morrissett (Morrissett). According to BrokerCheck Records kept by the Financial Industry Regulative Authority, Morrissett has been subject to 4 disputes, one of which is still pending. The majority of these concern unsuitable alternative investments.

Most recently, in April 2018, a customer alleged that from 2013 to 2015, Morrissett misrepresented two hedge funds by providing misleading information to the customer about the suitability of the funds, when in fact the hedge funds were unsuitable to the customer’s investment objectives. The customer has requested $2,300,000 in damages. This dispute is currently still pending.

in January 2014, a customer alleged that in 2000, Morrissett placed the customer into an unsuitable investment strategy that made the customer suffer vast losses in the global financial crisis. The case settled for $85,000.

Our firm has represented many clients in illiquid alternative investments products. All of these investments come with high costs and have historically underperformed even safe benchmarks, like U.S. treasury bonds. For example, products like hedge funds, oil and gas partnerships, REITs, and other alternative investments are only appropriate for a narrow band of investors under certain conditions due to the high costs, illiquidity, and huge redemption charges of the products, if they can be redeemed at all. However, due to the high commissions brokers earn on these products they sell them to investors who cannot profit from them and have created a large market for a failed product.

Morrissett has been subject to multiple complaints alleging the recommendation of unsuitable investment strategies. Under FINRA rules, Brokers are required to advise suitable investments for the customer by following certain criteria. First, an advisor must have a reasonable basis for the recommendation of the product or service based upon the broker’s research and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors. Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

Morrissett entered the securities industry in 1986 nd has been registered with Wells Fargo since October 2000. From May 1993 to October 2000, Morrissett was registered with First Union Brokerage Services, Inc. From August 1986 to May 1993, Morrissett was registered with Dominion Investment Banking, Inc.

Gana Weinstein LLP’s investment fraud attorneys represent investors who have suffered securities losses due to the mishandling of their accounts due to claims of unsuitable alternative investments. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.