The White Law Group reviews the regulatory history and customer complaints for B. Riley Wealth.
B. Riley Financial, headquartered in Los Angeles, California, is a financial services company recognized for its investment banking services for small-cap companies and expertise in retail liquidation.
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.
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.
Supervisory Failures involving 529 Plans
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.
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 a Complaint 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.
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. For more information, please visit our website, www.whitesecuritieslaw.com.
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.