B. Riley Wealth Management (“B. Riley Wealth Management”) (CRD#2543) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated B. Riley Wealth Management, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against B. Riley Wealth Management, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue B. Riley Wealth Management?
If you’ve lost money caused by B. Riley Wealth Management and/or its employees’ misconduct then the answer is, YES, you can sue B. Riley Wealth Management, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue B. Riley Wealth Management in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against B. Riley Wealth Management is to call Attorney Pearce at our office at 800-732-2889.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
What is B. Riley Wealth Management?
B. Riley Wealth Management (CRD#2543) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, B. Riley Wealth Management is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
B. Riley Wealth Management Has Many Different Regulatory Problems
B. Riley Wealth Management’s rapid growth has not been without consequences. There have been approximately 18 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been customer complaints filed against B. Riley Wealth Management for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. B. Riley Wealth Management is a repeat offender: there are over 18 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems B. Riley Wealth Management Has Faced Over the Years*
B. Riley Wealth Management has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
FINRA Censures B. Riley Wealth Management for Failure to Supervise 529 Share Class Recommendations
Brief Overview: Without admitting or denying the findings, B. Riley Wealth Management consented to the sanctions and to the entry of FINRA findings that it failed to establish and maintain a supervisory system reasonably designed to supervise representatives’ recommendations to customers to purchase share classes of 529 savings plans. FINRA stated that the firm did not provide proper guidance to representatives regarding the importance of share-class differences when recommending 529 plans. In addition, the firm’s written supervisory procedures required a review of 529 plan applications at account opening but did not require supervisors to evaluate the suitability of share-class recommendations or provide adequate guidance to supervisors regarding factors relevant to such a suitability review. Additionally, despite requiring supervisory review of 529 plan accounts at account opening, the firm did not have any systems or controls designed to track accounts as they were opened to check that the required supervisory reviews were completed. As a result, the firm was censured and ordered to pay restitution totaling $252,740.
FINRA Censures and Fines B. Riley Wealth Management for Failure to Report Transactions
Brief Overview: Without admitting or denying the findings, B. Riley Wealth Management consented to the sanctions and to the entry of findings that it failed to timely report approximately 450 transactions involving trace-eligible securities that were executed between it and an affiliated registered investment advisor. According to FINRA’s findings, the firm failed to maintain adequate written supervisory procedures addressing trace-reporting requirements applicable to transactions involving “to be announced” mortgage-backed securities. As a result of FINRA’s investigation, the firm was censured and fined.
FINRA Censures and Fines B. Riley Wealth Management for Lack of Supervision Over Exchange Trade Funds
Brief Overview: Without admitting or denying the findings, B. Riley Wealth Management consented to the sanctions and to the entry of FINRA findings that it failed to establish, maintain, and enforce an adequate supervisory system and written procedures for the supervision of sales of nontraditional exchange-traded funds. Even though the firm permitted its registered representatives to recommend non-traditional ETFs, the firm’s written supervisory procedures did not adequately address the characteristics and risks associated with nontraditional ETFs. Further, the firm did not utilize an effective system or report to enable its supervisors to identify instances in which a customer might be holding a position in a nontraditional ETF for an extended period. B. Riley Wealth Management also failed to provide formal training to its registered representatives and supervisory personnel regarding the characteristics and risks of nontraditional ETFs. As a result, the firm was censured and fined $50,000.
FINRA Censures and Fines B. Riley Wealth Management for Sale of Unregistered Securities
Brief Overview: Without admitting or denying the findings, B. Riley Wealth Management consented to the sanctions and to the entry of FINRA findings that the firm sold approximately 271 million unregistered shares of thinly traded low-priced stocks without first confirming that the shares could be sold pursuant to an exemption from registration. FINRA stated that because the shares were not covered by a registration statement that did not cover the issuers’ shares, the firm could not sell those shares without having confirmed the availability of an exemption from registration. FINRA also stated that the firm failed to establish, maintain, and enforce a supervisory system designed to ensure compliance with Section 5 of the Securities Act of 1933 and prevent illegal resales of restricted securities. In addition to all this, the firm failed to provide adequate training to the designated supervisors on how to assess the availability of an exemption from registration. As a result, the firm was censured and fined $108,343.
FINRA Censures and Fines B. Riley Management for Failure to Supervise Its Research Analysts’ Personal Trading
Brief Overview: FINRA initiated an investigation into B. Riley Management and alleged that the firm failed to supervise the personal trading of its research analysts who maintained discretionary accounts at other firms. According to FINRA’s allegations, the firm’s written supervisory procedures mandated compliance department review of personal trading of research analysts; but as a matter of policy, the firm did not require compliance review of analyst accounts over which discretionary trading authority had been granted to a third-party manager or advisor. Because of that policy, the firm did not review the personal trading of two analysts who held discretionary accounts at other firms. As a result, the firm was censured and fined $50,000.
*Above are only some of the regulatory disciplinary actions filed against B. Riley Wealth Management by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 13 BrokerCheck disclosures.
B. Riley Wealth Management Customer Complaints
There have been scores of customer complaints filed against B. Riley Wealth Management stockbrokers and investment advisors over the years. We have launched many investigations of current and former B. Riley Wealth Management advisors:
- Jack McBride of B. Riley Wealth Management
- Gregory Jacobson of B. Riley Wealth Management
- James Greene formerly with B. Riley Wealth Management
- Troy Goldberg of B. Riley Wealth Management
- Viqas Akhtar of B. Riley Wealth Management
- William Braun of B. Riley Wealth Management
- John Holly, Sr. of B. Riley Wealth Management
- Kerry Hoffman of B. Riley Wealth Management
- Roger Follis of B. Riley Wealth Management
- Charles Hartley of B. Riley Wealth Management
- Shaun Stein of B. Riley Wealth Management
- Mark Gassoso of B Riley Wealth Management Reviews
If you have lost money investing with any of these B. Riley Wealth Management advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does B. Riley Wealth Management Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of many franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did B. Riley Wealth Management Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. B. Riley Wealth Management is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting B. Riley Wealth Management without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By B. Riley Wealth Management Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with B. Riley Wealth Management cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
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