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Investor Alleges Unsuitability in Dispute with Morgan Hees

Morgan Hees (CRD #: 1607769), a broker registered with UBS Financial Services, is the subject of a pending dispute, according to his BrokerCheck record, accessed on February 21, 2023. If you want to know more about his alleged conduct as a broker, read on.

Investor Dispute

On January 3, 2023, an investor alleged that Morgan Hees violated the suitability rule with regard to the merger of certain holdings executed from June 28 to December 26, 2021, resulting in principal losses. The client seeks $637,686.15 in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles describe an investor’s age, tax status, and financial goals.

  • Illiquid investments are often unsuitable due to their difficulty to sell in the short term.
  • High-risk securities can expose an investor to an unsuitable degree of risk.
  • Trading activity can be quantitatively unsuitable, meaning that the broker executed an excessive number of trades. Excessive trading can quickly rack up trading fees and commissions that cut into clients’ returns.
  • Investment strategies must also serve investors’ goals. Overconcentration is a common example of an unsuitable investment strategy due to the level of risk involved.

Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.

Background Information

Morgan Hees has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 31 – Futures Managed Funds Examination
  • Series 7 – General Securities Representative Examination

Morgan Hees is a registered broker in 42 states and the Virgin Islands. He is also a registered investment adviser in New Mexico and Texas.

He has also worked for the following firms:

  • Morgan Stanley (CRD#:149777)
  • Morgan Stanley & Company (CRD#:8209)
  • Morgan Stanley (CRD#:7556)
  • Quest Capital Strategies (CRD#:16783)
  • Dean Witter Reynolds (CRD#:7556)

Kurta Law Can Help

If you worked with Morgan Hees and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.