Recent public disclosures in B. Riley’s SEC filings indicate the firm faces potential damage claims exceeding $8 million, alongside the above-mentioned pending FINRA Cause Examination. These disclosures includes various matters and allegations including claims alleging purported unsuitable investment recommendations to various other potential examples of financial advisor misconduct.
Some examples in the public records include disclosures such as:
- financial advisor Jeffrey Fishman allegedly made investment recommendations resulting in approximately $100,000 in client losses. Former broker Howard Kavinsky received a FINRA ban in December 2024 for allegedly creating falsified account statements for a non-existent hedge fund.
- former broker, Mark Alan Cline, facing allegations from some 20 customer complaints related to GWG L Bonds investments.
- n spring 2024, an investor filed claims seeking up to $5 million in damages against B. Riley, alleging fraud and negligence.
As reflected in the stock price chart above, it is difficult to determine if these recent events are impacting the parent company, B. Riley Financial Inc., stock price, as the parent company reported a $435 million loss in Q2 2024, partly attributed to Franchise Group’s bankruptcy.
The SEC launched an investigation in January 2025, issuing subpoenas to examine B. Riley’s financial health disclosures amid three consecutive years of losses and a significant stock price decline. In response to these developments, Haselkorn & Thibaut is investigating a number of former financial advisors that had previously been affiliated with National Securities and who are now affiliated with B. Riley Wealth Management. That law firm is a nationwide securities arbitration and litigation firm that helps investors recoup losses and damages from negligence or impropriety by a financial advisor or firm. The Haselkorn & Thibaut, P.A. law firm offers a free consultations for investors regarding potential loss recovery options.
The following sections explore some of the public disclosures related to B. Riley.
Key Points
- B. Riley Wealth Management has 23 disclosures, including 18 regulatory filings and 4 arbitrations while managing $6.9 billion in client assets.
- FINRA barred former B. Riley broker Howard Kavinsky in December 2024 for falsifying account statements and misrepresenting a non-existent hedge fund.
- The firm delayed its Q3 report in November 2024, projecting losses between $270-$280 million, which triggered a Nasdaq delisting warning.
- Several customer complaints involve GWG L Bonds associated with GWG Holdings’ Chapter 11 bankruptcy filed on April 20, 2022.
- B. Riley’s stock price has declined significantly in the last twelve months amid SEC subpoenas related to its Franchise Group dealings.
Overview of Customer Complaints
B. Riley Wealth Management is addressing approximately $8 million in pending numerous customer complaints across multiple states. These complaints may include investor concerns about investment advice and broker conduct that allegedly resulted in financial losses for clients. The details related to individual pending matters was not disclosed by B. Riley.
Examples of Pending Matters:
With some additional research and investigation, there appear to be a number of pending or previous customer disputes involving B. Riley Wealth Management’s investment practices.
Jeffrey Fishman, a financial advisor with 43 years of experiencewas allegedly making unsuitable investment recommendations. One investor reported a $100,000 loss, representing a 98.99% decrease in their investment value. This March 2025 complaint was denied by the firm. FINRA Rule 2111 requires financial advisors to align investments with each client’s age, financial goals, and risk tolerance. Investment advisers must uphold a fiduciary standard that prioritizes client interests.
FINRA barred former broker Howard Kavinsky on December 20, 2024, for allegedly creating inaccurate account statements and misrepresenting investments in what was believed to be a non-existent hedge fund.
Another B. Riley broker from Bryn Mawr, PA received a FINRA ban on August 3, 2023, for allegedly falsifying bank statements and providing inaccurate testimony.
Mark Alan Cline, a former broker from Wildwood, Florida, has accumulated as many as 20 customer complaints according to the FINRA Brokercheck website, with one of those matters still pending a resolution.
A FINRA claim in April 2023 for a New York family seeking $1-$3 million in damages for alleged fraud and negligence.
In May 2023, another FINRA arbitration claim was filed where the investor sought $1-$5 million.
In fairness, many of the allegations and customer disputes appear to involve what were likely grievances involving GWG L Bond recommendations to investors. The GWG Holdings company that issued the GWG L-bonds defaulted on the bonds and shortly thereafter filed Chapter 11 bankruptcy on April 20, 2022. The timing and substance of many of the customer disputes suggests that B. Riley Financial, Inc. may still be trying weather a bit of a storm related to that investment product and the financial advisor’s practices related to the recommendations of same.
Regulatory Actions and Investigations
B. Riley Wealth Management’s recent disclosure related to a FINRA cause examination, along with some $8 million of customer and other disputes is notable.
It is reported that B. Riley delayed its Q3 report on November 14, 2024, projecting losses between $270-$280 million. This reporting delay triggered a Nasdaq delisting warning. In January 2025, B. Riley disclosed that the SEC issued subpoenas related to its Franchise Group dealings.
Conclusion
The recent public filings and disclosures by B. Riley Wealth Management present some important considerations. Regulatory examinations and pending customer disputes may be part of the routine business in a highly regulated industry such as the financial services industry. In addition, the decline in the stock price could also be the result of any number of broader business or other issues. Nonetheless, for retail investors who may be trusting their life savings or retirement funds to financial advisors affiliated with this firm, they may have some questions to ask, or they may require some added reassurance.
Investors should remain informed about public disclosures including any regulatory matters related to the firm or any individual financial advisors, and should certainly be well-informed regarding any currently pending or prior customer disputes. The Haselkorn & Thibaut, P.A. law firm is a nationwide securities arbitration and litigation law firm that offers a free consultation to investors who may have suffered losses or damages as a result of any negligence or impropriety by any financial advisor or firm.
Haselkorn & Thibaut, P.A. specializes in addressing losses and helping investors recoup damages from broker and financial advisor misconduct across all 50 states. Investors should review their investment account statements and ensure their advisors are acting in their best interests, they understand their investment products or strategies, and they should ask questions and get answers if there are any discrepancies.
Disclaimer: The information contained in any post on this website is derived from publicly available sources and is not guaranteed as to accuracy and often involves allegations which may or may not be proven at some point in the future. All posts are believed to be accurate as of the time of original posting, but the accuracy and details are subject to and expected to change over time and which may contain opinions of the author at the time posted.
