B. Riley Wealth Review – Complaints, Regulatory History & Lawsuit Investigations

The White Law Group is investigating potential FINRA arbitration claims involving B. Riley Wealth Management and B. Riley Wealth Advisors (CRD#: 2543 / SEC#: 801-67275, 8-31206). Based in Memphis, Tennessee, the firm has over 400 advisors managing $6.9 billion in client assets.

According to FINRA BrokerCheck, B. Riley Wealth Management has 23 disclosures on its record, including multiple FINRA and SEC enforcement actions, broker misconduct allegations, investor lawsuits, and customer complaints. The following is an overview of recent regulatory issues and notable cases.

Recent B. Riley Financial Updates

• Dividend Suspension & Debt Reduction – January 22, 2025: B. Riley suspended dividends on its 6.875% Series A and 7.375% Series B preferred shares to prioritize redeeming $172.5 million in notes maturing February 2025. The decision follows a $435 million Q2 2024 loss and write-downs tied to Franchise Group’s bankruptcy.
• Nasdaq Delinquency Notices – June 4, 2025: Nasdaq issued another delinquency notice for late 2024 10-K and Q1 2025 10-Q filings. The company has until September 29, 2025, to regain compliance.
• Franchise Group Bankruptcy – November 3, 2024: Franchise Group, backed by B. Riley, filed for Chapter 11. The investment bank faced scrutiny over its role in a 2023 management-led buyout.

B. Riley Wealth: Broker Misconduct & Customer Complaints

B. Riley Wealth has faced numerous broker misconduct investigations, including allegations of falsified documents, unsuitable investments, and unauthorized trading.

• Howard Kavinsky (CRD#: 5881623) – Barred by FINRA in December 2024 for falsifying at least 190 account statements for senior investors.
• Viqas Akhtar (CRD#: 5624412) – Nine disclosures, including unauthorized trading and unsuitable investment complaints, with multiple settlements, including $100,000 in 2023.
• Johnathon Sawaged (CRD#: 7061837) – Permanently barred by FINRA in May 2025 after refusing testimony in an investigation over mishandled client payments while employed by a B. Riley affiliate.
• Mark Cline (CRD#: 3206962) – Twenty customer complaints, many tied to unsuitable sales of high-risk GWG L Bonds, which later went into bankruptcy.

Arbitrations & Lawsuits

• Mark Sam Kolta – $17.7 Million Award – Former National Securities broker (now part of B. Riley Financial) barred by FINRA in 2024 for unsuitable non-traded REIT sales. In February 2025, a FINRA panel awarded B. Riley $17.7 million against Kolta. His BrokerCheck lists 30 disclosures, including 26 settled disputes and two pending claims.
• The White Law Group FINRA Claims – Filed multiple arbitration cases against B. Riley Wealth for recommending high-risk, illiquid alternative investments. Some claims seek between $1 million and $5 million in damages for fraud, breach of fiduciary duty, and negligent supervision.

Broker Due Diligence & Supervisory Rules

Under FINRA Rule 3110 (Supervision) and Rule 2111 (Suitability), brokerage firms must establish and maintain a supervisory system designed to ensure that brokers comply with securities laws and regulations. This includes:

• Performing due diligence before recommending investments to determine whether they are suitable for a customer’s financial situation, risk tolerance, and investment objectives.
• Monitoring broker activity to identify and address red flags, such as high concentrations in risky products or unusual trading patterns.
• Reviewing customer complaints and promptly investigating potential misconduct.

If a firm fails to follow these supervisory obligations, it can be held liable for negligent supervision in a FINRA arbitration claim.

Class Action vs. Individual FINRA Arbitration

For investors with substantial losses (over $100,000), individual FINRA arbitration is often more effective than joining a class action. Class action lawsuits may be better suited for smaller claims.

Nationwide Securities Fraud Attorneys

The White Law Group represents investors in all 50 states in FINRA arbitration claims involving stock fraud, unsuitable investments, broker negligence, misrepresentation, unauthorized trading, and other securities-related disputes. With over 30 years of securities law experience and more than 800 FINRA cases handled, the firm has the expertise to help investors recover losses.

FAQs – B. Riley Wealth Complaints & Lawsuits

1. How do I check if my B. Riley broker has complaints?
You can review a broker’s record for free on FINRA’s BrokerCheck website, which lists customer complaints, regulatory actions, and employment history.

2. What types of claims have been filed against B. Riley Wealth?
Common allegations include unsuitable investment recommendations, misrepresentation, failure to supervise, unauthorized trading, and sales of high-risk alternative products.

3. Can I recover losses from unsuitable investments?
Yes. Investors may be able to recover losses through a FINRA arbitration claim against the brokerage firm if it failed to properly supervise its brokers or recommended unsuitable investments.

Free Consultation

If you have suffered losses investing with B. Riley Wealth Management, call The White Law Group at 888-637-5510 or visit whitesecuritieslaw.com for a free case evaluation.