Financial advisor Carmen Morrone (CRD# 1898874), based in Wantagh, New York, is currently the subject of investor complaints alleging significant financial damages. These allegations center on his conduct while registered with Realta Equities, where he operates under the business name Blue Ocean Private Wealth.
If you or someone you know has suffered significant investment losses working with Carmen Morrone or another brokerage firm, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in securities fraud cases and will help to guide you through the process with a free and confidential consultation to determine whether your losses are the result of actionable misconduct.
What Are the Recent Allegations Against Carmen Morrone?
According to his BrokerCheck report, Carmen Morrone has been the subject of two separate investor disputes filed in January 2026. These claims involve high-dollar damages and raise serious questions regarding the due diligence performed on complex investment products.
Important Points Regarding the 2026 Complaints:
- $1,000,000.00 Claim: A pending customer dispute filed on January 17, 2026, alleges that Carmen Morrone failed to conduct adequate due diligence and provide necessary disclosures regarding a Delaware Statutory Trust (DST) investment.
- $561,303.24 Claim: A second pending dispute, filed on January 13, 2026, similarly alleges a failure of due diligence and disclosure related to alternative investments.
- Past Disciplinary History: In 2003, a prior complaint was filed alleging that Morrone recommended an unsuitable variable annuity while at CIBC World Markets Corporation. While that claim for $22,000.00 was denied by the firm, the recent filings suggest a recurring pattern of allegations related to investment suitability and disclosure.
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Understanding the Risks of Delaware Statutory Trusts (DSTs)
The primary claim against Carmen Morrone involves a Delaware Statutory Trust (DST). While DSTs are often marketed to investors seeking to defer capital gains through 1031 exchanges, they carry several layers of risk that are not always made clear.
- Illiquidity: DSTs are typically long-term, buy-and-hold investments with horizons of 7–10 years and no active secondary market.
- High Fees: These products often come with upfront commissions as high as 7–10%, which can immediately erode an investor’s principal.
- Lack of Control: Investors in a DST do not directly own the real estate; the sponsor makes all management, leasing, and selling decisions.
- Regulatory Fragility: The tax benefits of a DST depend on strict adherence to IRS rules; any error in execution can result in an unexpected and massive tax bill.
Broker Responsibilities and “Due Diligence”
Brokers like Carmen Morrone are legally required to act in their clients’ best interests. This includes performing “due diligence,” which means the advisor must fully understand the risks and mechanics of an investment before recommending it to a customer.
When an advisor fails to disclose critical risks or recommends a product that does not align with a client’s financial goals and risk tolerance, they—and their firm—may be held liable for the resulting losses. Investors who have been misled often pursue recovery through arbitration, a structured legal process for resolving disputes with financial firms.
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How Meyer Wilson Werning Helps Investors Recover Losses
At Meyer Wilson Werning, we represent individuals who have suffered financial harm due to advisor misconduct, misrepresentation, and supervisory failures. With decades of experience and over $350 million recovered for our clients, we focus on holding brokerage firms accountable when their systems fail to protect investors.
If you suffered losses tied to alternative investments, DSTs, or the recommendations of Carmen Morrone at Realta Equities, our team can help you evaluate your legal options. Contact us today for a free and confidential consultation to discuss your situation and learn how we can assist you in protecting your financial interests.
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Frequently Asked Questions
Who is Carmen Morrone and what are the current claims against him?
Carmen Morrone is a financial advisor based in Wantagh, NY, currently registered with Realta Equities (doing business as Blue Ocean Private Wealth). In January 2026, two investors filed complaints seeking combined damages of over $1.5 million, alleging he failed to perform due diligence and provide adequate disclosures regarding Delaware Statutory Trusts and alternative investments.
What is a Delaware Statutory Trust (DST) and why is it considered high-risk?
A DST is a legal structure where investors hold a beneficial interest in a trust that owns real estate. They are considered high-risk because they are highly illiquid (often locking up funds for a decade), involve high upfront fees, and give the investor zero control over the property’s management.
Can I recover money lost in a DST investment?
Yes, if your financial advisor failed to disclose the risks, provided misleading information, or recommended the DST despite it being unsuitable for your financial profile, you may have a claim for recovery. These claims are typically handled through arbitration.
What is the registration history of Carmen Morrone?
Carmen Morrone has 29 years of experience in the securities industry. In addition to Realta Equities, his past registrations include B. Riley Wealth Management, National Securities Corporation, Prime Capital Services, Royal Alliance Associates, and CIBC World Markets, among others.
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