B. Riley Wealth Management advisor William Morrison (CRD #: 1556786), currently faces allegations relating to unsuitable investment recommendations and the inappropriate use of margin trading. The securities industry is complex and ever-changing, often presenting risks that investors need to fully understand. As Warren Buffett once insightfully remarked, “Risk comes from not knowing what you’re doing,” a sentiment that resonates deeply in situations like these. Understanding the full implications of investment advice is critical, especially when margin or borrowed funds are involved.
The case at hand
According to a customer complaint filed on March 15, 2025, William Morrison, associated with B. Riley Wealth Management, has been accused of making unsuitable investment recommendations to his client, in addition to allegedly improperly employing margin trading strategies. The complaint seeks damages totaling $500,000 due to transactions executed between 2022 and 2024 which reportedly resulted in considerable financial losses for the client.
The allegations listed in the customer complaint describe that Morrison:
- Recommended excessive use of margin borrowing without adequately explaining or disclosing associated risks.
- Failed to properly consider and respect the client’s conservative investment objectives and stated risk tolerances.
- Implemented investment decisions that featured overly aggressive trading strategies unsuitable for the client’s moderate risk profile.
- Disregarded multiple indicators that the selected strategies did not match the client’s stated financial goals and risk limits.
The affected client, described as a retired schoolteacher, relied upon Morrison’s professional judgment and guidance, expecting advice aligned with conservative to moderate risk tolerance. Instead, the complaint specifies that due to the excessive use of margin recommended by Morrison, the client’s portfolio experienced pronounced setbacks amid increased market volatility towards the end of 2024. Margin calls ultimately led to compulsory liquidation of long-held positions at substantially unfavorable market prices, exacerbating the client’s losses.
Professional background and history
William Morrison has built a career in the brokerage industry spanning approximately 25 years, with professional affiliations at multiple major financial institutions. Morrison began his current tenure at B. Riley Wealth Management in 2018. Before joining the firm, Morrison held positions at several prominent brokerage firms including:
- Raymond James Financial Services from 2010 through 2018
- Morgan Stanley, employed between 2000 and 2010
- Merrill Lynch, from 1995 until 2000
According to data provided by FINRA, roughly 8% of financial advisors have at least one customer complaint filed on their official records. Morrison himself has two prior customer complaints according to his BrokerCheck history:
- A 2015 customer dispute regarding allegations of unauthorized trading, which was subsequently settled by the firm for $75,000.
- A 2019 complaint alleging unsuitable investment recommendations, which was eventually denied.
Investor education platforms such as financialadvisorcomplaints.com highlight the importance of reviewing an advisor’s professional history thoroughly, including regulatory disciplinary actions and customer disputes, when choosing an investment professional.
Understanding broker responsibilities and suitability rules
Financial advisors are obligated to comply with rules governing suitability under FINRA Rule 2111, which clearly states that the advisor must have a reasonable basis for believing that investment recommendations match the client’s specific needs and risk tolerance. Advisors must carefully factor in:
- The investor’s age, financial experience, and overall retirement or financial situation.
- The clearly-defined investment objectives of the individual client.
- The client’s tolerance for risk and experience with relevant investment products.
- Information provided directly by the investor regarding their financial preferences and objectives.
Margin trading, or investing with borrowed funds, can significantly amplify potential returns, but it simultaneously elevates investment risks substantially. As clearly explained by the financial education platform Investopedia, while margin investing can magnify gains during beneficial market conditions, it can also considerably worsen losses when markets decline or become volatile. Advisors have a crucial obligation to disclose those increased risks and ensure clients fully understand the implications based on their individual investment objectives and tolerance for risk.
The ongoing concern of unsuitable advice and financial misconduct
Financial misconduct or poor investment advice unfortunately remains an issue in today’s marketplace. While most financial professionals operate within ethical guidelines and thoroughly match recommendations to their clients’ objectives, a small percentage of advisors have historically engaged in practices deemed inappropriate or unethical. The consequences for individuals receiving unsuitable advice can be financially devastating, particularly for retirees with limited opportunities to recoup financial losses.
The North American Securities Administrators Association (NASAA) suggests that investors may lose billions of dollars each year due to fraudulent activity or unsuitable investment guidance. Misrepresentation, excessive trading or “churning,” unauthorized trading, and unsuitable investments consistently rank among top reasons customers file complaints against advisors nationwide.
Key takeaways and recommendations
This current dispute involving Morrison provides valuable learning points to both investors and financial professionals:
- Investors should:
- Insist on clear explanations regarding any recommended investment or risk strategy.
- Be cautious with aggressive or complicated strategies such as margin borrowing that do not align with their stated goals and risk tolerances.
- Maintain regular oversight of account transactions and review account statements frequently for accuracy.
- Retain documentation of advisor discussions and recommendations.
- Financial advisors must:
- Adhere strictly to suitability and fiduciary obligations and ensure client recommendations always represent clients’ best interests.
- Maintain comprehensive and accurate records on recommendations and objectives outlined with clients.
Failure on the advisor’s behalf to adhere to these rules and best practices can lead to significant consequences, including regulatory sanctions, costly arbitration cases, monetary fines, suspensions, and damaged professional reputations.
For all involved in the financial market, from investors to brokers, this case serves as an important reminder of the need for transparency, communication, appropriate disclosures of risk, and careful consideration of investment suitability. While the allegation against Morrison currently awaits judgment through FINRA arbitration, it highlights the significance of cautious decision-making and due diligence by all market participants, emphasizing the integrity necessary for successful long-term trust and relationships within the financial markets.
Correction or Updated Info Needed? The information in this article includes the publisher's opinion and is based on publicly available materials believed to be accurate at the time of publication.
We welcome updates. If you have personal knowledge of additional facts or details related to any issues or individuals, and you believe that information would enhance the accuracy of the article, don't hesitate to get in touch with us https://financialadvisorcomplaints.com/article-correction-update/ and provide you name, address, email, and telephone contact for follow-up reporting, along with the back-up for any updates. The publisher strives to provide the most up-to-date and most accurate report regarding all issues and events, and welcomes input from any individuals with personal knowledge.
DISCLAIMER: The information herein is derived from public sources and is provided "as is" without warranty of any kind. Legal matters may have subsequent developments, and market values may fluctuate. While we strive for accuracy, we make no representations about the completeness or reliability of this information. Readers should independently verify all content and seek professional advice as needed.
