B. Riley Wealth Management and B. Riley Wealth Advisors (CRD#: 2543/SEC#: 801-67275,8-31206) are dual registered broker dealers and investment advisors located in Memphis Tennessee.  B. Riley Wealth Advisors, registered in 2005, has 415 advisors. B. Riley Wealth Advisors manages $6.9 billion and provides investment advisory services.

In February 2021, B. Riley Financial, Inc. (NASDAQ: RILY) and National Holdings Corporation (NASDAQ: NHLD) announced the completion of the firms’ previously announced merger. In connection with the transaction, National becomes a wholly owned subsidiary of B. Riley Financial and an affiliate of B. Riley Wealth Management. National adds nearly 700 registered representatives and assets of approximately $20 billion to the B. Riley Financial platform. B. Riley Wealth Management currently includes over 170 advisors and assets of over $12 billion.

Regulatory actions taken against a broker-dealer may include censures, fines, suspensions, and restitution, among others. They can have grave consequences for a broker-dealer’s profile and reputation. The following is a review of FINRA and the SEC’s (among others) regulatory actions involving B. Riley Wealth Management.

December 2020 – B. Riley Wealth Management has been sanctioned by FINRA for supervisory failures related to 529 Plan recommendations. The firm, between January 2013 and June 2018, allegedly lacked a proper supervisory system to oversee representatives’ recommendations on 529 savings plans.

Failures included insufficient guidance to registered representatives regarding share-class differences and a lack of controls for consistent supervisory review.

B. Riley Wealth self-reported potential issues proposed a remediation plan totaling $252,740 for affected customers, and received a censure from FINRA, but no fine.

Broker Misconduct and Customer Complaints 

All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct.  There have been several cases of registered representatives employed by B. Riley Wealth who were allegedly involved in broker misconduct and fraudulent activities. When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

FINRA Bars B. Riley Broker after Allegations

An advisor formerly registered with B. Riley in Bryn Mawr, PA, was barred without admitting or denying the findings in August 2023. The broker allegedly provided falsified bank account statements and checks to FINRA in response to a document request, made false statements to FINRA in response to inquiries, and provided false testimony to FINRA.

These allegations stemmed from a Form U5 filed by B. Riley, which reported their discharge for initiating unfunded automated clearing house (ACH) transfers to their personal account and initially being untruthful about it. Further requests for evidence led to the  advisor allegedly providing falsified checks and bank statements, altering dates, amounts, and deposit information. Additionally, the individual reportedly provided false testimony during an on-the-record session, including presenting further falsified bank statements with inflated balances.

Mark Cline, former B. Riley Wealth Rep, has 20 Customer Complaints

Ex-B. Riley Wealth broker Mark Alan Cline (CRD#: 3206962) from Wildwood, Florida has reportedly accumulated 20 customer complaints on his broker record, according to the Financial Industry Regulatory Authority’s website.

Of these, 1 complaint is currently pending, with the three most recent ones involving alleged unsuitable recommendations related to the high-risk and illiquid GWG L Bonds investment sponsored by GWG Holdings. The Dallas-based financial services firm, GWG Holdings, filed for Chapter 11 bankruptcy protection on April 20, 2022, after failing to meet $13.6 million in interest payments to bondholders.

The White Law Group files Claims against B. Riley Wealth Management

April 2023 – The White Law Group filed a FINRA Dispute Resolution claim in against B. Riley Wealth Management, Inc. on behalf of a New York family, requesting damages for alleged violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim alleged that B. Riley Wealth Management unsuitably recommended high risk, complex investments. The claim is seeking damages of between $1 million- $3 million.

May 2024 – The White Law Group filed a FINRA arbitration claim against National Securities Corp and B. Riley Wealth Management for investment losses involving high risk alternative investments.  The claim seeks damages of $1,000,000 and $5,000,000. 

The firm submitted a claim to FINRA Dispute Resolution on behalf of Georgia resident alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. 

Class Action vs. Individual FINRA Arbitration Lawsuit 

You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case.  The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option.  Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually. 

National Securities Attorneys 

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.

The Financial Industry Regulatory Authority (FINRA) operates the largest dispute resolution forum in the securities industry.  In fact, FINRA Dispute Resolution is the forum for almost all disputes between investors, brokerage firms and individual brokers.  This is because most brokerage firms have mandatory arbitration clauses in their account agreements that require investors to file their disputes through FINRA.

The White Law Group represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.

With over 30 years of securities law experience, The White Law Group has the expertise to help investors who were defrauded by their financial advisors.

Free Consultation

If you have suffered losses investing with B. Riley Wealth Management and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.