Baton Rouge attorney Jack K. Whitehead Jr. will now represent once-prominent investment advisor Walter Morales and Commonwealth Advisors in a pending federal jury trial.
The new attorney’s arrival means a bench trial previously scheduled for Sept. 9 will be postponed to begin in August 2025. The only remaining plaintiff in the case is the Firefighters’ Retirement System.
Whitehead is the latest in a string of lawyers representing Morales and Commonwealth Advisors. In February, Morales’ previous attorneys―citing “irreconcilable differences”―withdrew mere months ahead of the scheduled trial.
Hammond attorney Gary Gambel, New Orleans attorney Jennifer Willis and Livingston attorney Rebecca Davis Lee note only that their decision involves “reasons which it would be inappropriate to publicly state but which render ongoing representation impractical and unworkable.”
The move came a little over three years after Taylor Porter attorneys Frederick Tulley, John Milazzo Jr. and Ryan French were replaced by the new legal team.
In a minute entry after a conference with Whitehead on May 30, deGravelles makes mention of a conversation planned to discuss a “schedule for Mr. Morales to disclose his assets in an attempt to help bring this matter closer to a resolution.” He also notes a magistrate judge’s potential availability for a settlement conference.
More than 13 years ago, local investors sued Walter Morales and his firm, Commonwealth Advisors, alleging that they were misled about how risky their investments were and how their money was handled, which Morales has denied.
While Morales settled a similar suit with the U.S. Securities and Exchange Commission in 2018—admitting no wrongdoing but agreeing to pay a $130,000 fine and not associate with any investment adviser for at least five years—the investors’ case continues to this day.
Morales was a well-known and highly respected advisor in Baton Rouge with a reputation for delivering better-than-average returns. Following the 2008 financial crash, he was accused of misleading his clients about where he invested their money and using fraudulent means to hide losses.
Morales said he did not engage in fraud and only tried to help his clients after the mortgage-backed securities market collapsed. The SEC did not accuse him of stealing investors’ money and he did not face criminal charges. He could not be reached Thursday for comment.
