Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, William Morris (CRD # 1793507) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into Regulation Best Interest violation (Reg BI).
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Morris.
Registration Background for William Morris
Mr. Morris first became registered in the securities industry in 1988. He is currently registered with KCD Financial, Inc. (CRD # 127473). He was previously registered with Cape Securities Inc. (CRD # 7072) from April 2020 to February 2026, and Calton & Associate, Inc. (CRD # 20999) from June 2016 to February 2020.
FINRA’s Allegations Against William Morris
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated April 7, 2026 (No. 2021069370603), Mr. Morris consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From February 2021 through April 2021, [Mr.] Morris recommended that five retail customers, including four senior customers, invest in GWG L Bonds, which are speculative, unrated corporate bonds”;
- “All of the customers had moderate risk tolerances and investment objectives of income and growth”;
- “GWG had a history of net losses and had not generated sufficient operating and investing cash flows to fund its operations. To finance its operations, GWG offered corporate bonds (known as L Bonds) to investors with varying maturity periods and interest rates. L Bonds were not directly secured by GWG’s life insurance portfolio and were not rated by any bond rating agency”;
- “In making these recommendations, [Mr.] Morris mistakenly believed that GWG L Bonds were still backed by life insurance policies rather than the much riskier alternative assets obtained through GWG’s reoriented business model”; and
- By virtue of his actions, Mr. Morris violated Exchange Act Rule 15l-1(a)(1), regarding acting in the best interest of the customer, and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Sanctions William Morris from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s April 7, 2026 AWC also indicates that Mr. Morris consented to the following sanction(s):
- a three-month suspension from association with any FINRA member in all capacities;
- a fine in the amount of $10,000.00; and
- restitution in the amount of $5,607.00 plus interest.
William Morris Has a Prior History of Securities Industry Customer Complaints
In addition to Mr. Morris being suspended by FINRA from the securities industry regarding Reg BI, FINRA BrokerCheck for Mr. Morris
reveals that he has a history of customer complaints and/or customer-initiated arbitrations, including but not necessarily limited to the following:
- On June 23, 2025, a customer initiated oral complaint against Mr. Morris regarding alleged actions that occurred while he was associated with Cape Securities Inc. The allegation(s) related to investments made in GWG L bonds. The customer further alleged damages in the amount of $200,000.00. On June 25, 2025 the customer complaint was settled in the amount of $100,000.00, with Mr. Morris contributing $50,000.00.
Have You Lost Money with William Morris?
If you or someone you know has or had a brokerage account with Mr. William Morris and have concerns regarding losses in your investments or possible sales practice violations including fraud or negligence, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
