We rarely hear about fraudulent financial advisors like William Keeney of Merrill Lynch. If you’re someone looking to hire a financial advisor, be sure to do your due dilligence because this case will make you realize how dangerous a negligent advisor could be:
William Keeney Hit with $1.8M Complaint Over Merrill Lynch Dealings
William Keeney, a veteran financial advisor and broker currently registered with Merrill Lynch, is facing a significant customer complaint that alleges unsuitable investment recommendations resulted in nearly $1.9 million in damages. According to publicly available records maintained by the Financial Industry Regulatory Authority (FINRA), this latest complaint marks one of several allegations of misconduct made against Keeney during his decades-long career in the financial services industry.
Allegations of Unsuitable Investment Recommendations
The most recent complaint against Keeney, filed in October 2020, remains pending and is the most substantial of his career to date. The customer alleges that, while representing Merrill Lynch between December 2015 and February 2020, Keeney advised them to invest in financial products that were not aligned with their risk tolerance or investment objectives. The investor is seeking damages totaling $1.88 million, claiming that these investments resulted in significant financial losses.
Details of the specific investments involved have not been publicly disclosed, but the nature of the claim suggests concerns over a potential breach of fiduciary duty or failure to adhere to the “suitability rule,” a standard requiring that brokers recommend investment strategies that align with a client’s financial situation and objectives.
Historical Complaints on Record
This is not the first time Keeney has faced allegations related to unsuitable investment advice. FINRA’s BrokerCheck database reveals two other complaints on his record:
- 2005 Complaint (Denied): While employed at Banc of America Investment Services, Keeney was accused of recommending an inappropriate mutual fund investment. The investor involved in the case sought $25,000 in damages. However, the firm reviewed the case and denied the complaint, deciding not to offer restitution.
- 2019 Complaint (Closed Without Action): In this case, a customer again alleged that Keeney recommended unsuitable index options while serving as a Merrill Lynch representative. While the specific amount of losses was not disclosed, the claim did not result in any formal disciplinary action or settlement. The complaint was ultimately closed with no action taken by the firm or regulatory authorities.
Professional Background and Licensing
Despite these complaints, William Keeney remains an active and registered financial professional. He has been affiliated with Merrill Lynch’s Newton, Massachusetts branch since 2009, where he serves both as a broker and an investment adviser. Over the years, Keeney has accumulated a lengthy resume with several major financial institutions.
Prior to joining Merrill Lynch, Keeney was registered with:
- Banc of America Investment Services in Sudbury, Massachusetts
- Quick & Reilly in Newton, Massachusetts
- Morgan Stanley DW in Purchase, New York
His regulatory credentials are extensive. Keeney has successfully completed five major securities industry qualification exams, demonstrating the required knowledge and competency to advise clients across a wide range of financial products. These include:
- Series 7 – General Securities Representative Examination
- Series 63 – Uniform Securities Agent State Law Examination
- Series 65 – Uniform Investment Adviser Law Examination
- Series 31 – Futures Managed Funds Examination
- Securities Industry Essentials (SIE) Exam
He currently holds licenses to operate in 23 U.S. states and is registered with multiple major self-regulatory organizations and exchanges, including FINRA, the New York Stock Exchange, Nasdaq, and several Cboe markets.
What This Means for Investors
For investors working with Keeney or considering doing so, the pending complaint serves as a reminder of the importance of due diligence. While past complaints do not automatically indicate guilt or wrongdoing, they do provide insight into a broker’s history of customer interactions and potential red flags. FINRA’s BrokerCheck tool is publicly accessible and serves as a valuable resource for investors to verify the backgrounds of financial professionals.
At this stage, the $1.88 million complaint remains unresolved, and Keeney has not been found liable for any misconduct related to the current or past allegations. Merrill Lynch has not publicly commented on the matter, and no regulatory penalties or enforcement actions have been reported as of the latest update.
William Keeney’s case highlights the complexities and high stakes involved in the investment advisory business. With millions of dollars on the line and clients relying heavily on their advisors’ judgment, even seasoned professionals can find themselves at the center of investor disputes. As the pending case unfolds, industry insiders and clients will closely watch the outcome.
Merrill Lynch Advisor William Keeney Involved in Six-Figure Settlements Over Unsuitable Investment Allegations
William Keeney, a long-serving stockbroker and investment adviser with Merrill Lynch, has been the subject of multiple investor complaints that have led to substantial six-figure settlements. According to publicly available records maintained by the Financial Industry Regulatory Authority (FINRA), these complaints stem from allegations of unsuitable investment recommendations made during his tenure with the firm.
Two Complaints, Over $1.1 Million in Settlements
Mr. Keeney’s BrokerCheck profile reveals two significant investor complaints that have been resolved through financial settlements:
- 2020 Complaint: This more recent complaint alleged that Keeney, while acting as a representative of Merrill Lynch, recommended investments that were unsuitable for the client’s financial situation and goals. The period cited in the complaint spans from December 2015 to February 2020. The matter was settled in 2020 with the investor receiving $667,289.37.
- 2019 Complaint: In this earlier case, the client alleged that Keeney recommended unsuitable investment options. That complaint, also connected to his role at Merrill Lynch, was resolved in 2021 with a settlement totaling $482,710.63.
These two settlements, together amounting to more than $1.1 million, underscore the seriousness of the allegations and the financial impact reported by the investors involved.
Suitability Standards and Broker Obligations
Under FINRA rules, brokers like William Keeney are bound by the suitability standard, which requires them to recommend only those investments or strategies that are appropriate for a customer’s financial profile. This profile must consider a wide range of personal and financial factors, including:
- Age and income
- Net worth and liquidity needs
- Investment objectives and time horizon
- Risk tolerance
- Investment experience
FINRA stresses that brokers must exercise “reasonable diligence” in collecting this information and evaluating investment options before making any recommendation. Failure to do so may result in regulatory action or liability in customer arbitration claims, such as those that led to the settlements involving Keeney.
A 23-Year Industry Veteran
Despite these complaints, Keeney remains an active financial professional, currently registered as both a broker and investment adviser with Merrill Lynch’s Newton, Massachusetts office—a position he has held since 2009.
His professional background includes prior roles with several major financial firms:
- Banc of America Investment Services (Sudbury, MA | 2004–2009)
- Quick & Reilly (Newton, MA | 2003–2004)
- Morgan Stanley DW (Purchase, NY | 1998–2002)
Over his 23-year career, Keeney has passed numerous key licensing exams, including:
- Series 7 – General Securities Representative Examination
- Series 63 – Uniform Securities Agent State Law Examination
- Series 65 – Uniform Investment Adviser Law Examination
- Series 31 – Futures Managed Funds Examination
- Securities Industry Essentials (SIE) Exam
He also holds 24 state securities licenses, giving him authorization to offer investment services in a wide geographic area.
What Investors Should Know
While the existence of customer complaints and settlements does not in itself prove wrongdoing, they serve as important indicators for potential investors researching a broker’s background. FINRA’s BrokerCheck tool is available to the public and provides transparency into a broker’s disciplinary history, registration status, and past disputes.
Investors are encouraged to carefully review this information and consult independent legal or financial professionals when evaluating the suitability of an advisor or investment strategy.
Legal Representation for Investors
Carlson Law represents individual investors across the U.S. in disputes with financial advisors and brokerage firms. If you or someone you know has suffered investment losses due to allegedly unsuitable advice or other misconduct, legal remedies may be available.
For a free and confidential consultation, contact Carlson Law at 888-976-6111 or visit our website to fill out our secure contact form.
Financial Fraud and Misconduct Cases in the U.S.:
Record-Breaking Financial Penalties in 2024
In fiscal year 2024, the U.S. Securities and Exchange Commission (SEC) imposed a historic $8.2 billion in financial remedies, marking the highest amount in its enforcement history. This included $6.1 billion in disgorgement and interest and $2.1 billion in civil penalties. Notably, a $4.5 billion settlement with Terraform Labs contributed heavily to this record. Despite the high dollar amount, the total number of enforcement actions decreased by about 26 percent compared to the previous year.
Corporate Oversight and Record-Keeping Failures
The SEC has been actively addressing misconduct related to electronic communication practices. In 2024, twelve firms were fined a total of $88 million for failing to preserve off-channel communications. Stifel, Invesco, and four other firms absorbed most of the penalty. Several firms avoided fines altogether by self-reporting and cooperating with the SEC, reinforcing the agency’s emphasis on proactive compliance.
Whistleblower Contributions and Incentives
Whistleblowers have become a key part of the SEC’s enforcement strategy. In 2024, the SEC received over 45,000 tips and complaints through its whistleblower program. As a result, it awarded $255 million to whistleblowers. Since the program’s launch, more than $4.8 billion in penalties have been collected and over $1 billion has been paid in awards, highlighting the growing impact of whistleblower efforts in uncovering financial fraud.
State Enforcement Actions and Restitution
State regulators continue to play an important role in holding financial violators accountable. Member agencies of the North American Securities Administrators Association reported $223 million in fines and $702 million in restitution to victims. This underscores the importance of state-level enforcement alongside federal actions.
False Claims Act and Civil Recovery
The Department of Justice recovered $2.9 billion in fiscal year 2024 through civil litigation under the False Claims Act. Healthcare fraud accounted for $1.6 billion of that total, indicating that financial misconduct extends well beyond Wall Street and into sectors like medical billing and government contracting.
High-Profile Civil Fraud Cases
Civil courts have also handled several high-profile fraud cases. In New York, former President Donald Trump and his companies were ordered to pay $354 million for manipulating financial statements. Meanwhile, in the digital asset space, the Department of Justice pursued seizure of $225 million in cryptocurrency tied to large-scale fraud schemes. These schemes, known as “pig butchering,” reportedly resulted in $5.8 billion in losses in 2024 and affected more than 400 victims.
Conclusion: Stronger Enforcement, Emerging Risks
The U.S. financial enforcement landscape remains aggressive, particularly in targeting insider trading, accounting fraud, and crypto-related misconduct. While fewer enforcement actions were filed in 2024, the dollar impact was unprecedented. Self-disclosure, cooperation, and whistleblower programs are increasingly central to both corporate defense strategies and regulatory success. As new threats emerge in digital finance and communications, the focus on transparency and accountability continues to sharpen.
