Embattled GunnAllen loses top-producing branch

MAR 22, 2010
Beleaguered broker GunnAllen Financial Inc. has lost a top-producing branch — the broker-dealer's first major defection since the resignations last month of its holding company's chairman and chief financial officer. Acumen Investment Services, one of GunnAllen's top 10 producing branches, is no longer affiliated with the firm, Acumen chief Joseph LaScala said in an interview. On Jan. 4, the firm became affiliated with Paulson Investment Co. Inc. Mr. LaScala said that it was with a “heavy heart” that he left Gunn- Allen, with which his firm had been affiliated for the past seven years. However, recent events at GunnAllen left him little choice, he said. Last month, John Sykes, chairman of Gunn Allen Holdings, resigned from the company's board. Scott Bendert, the broker-dealer's chief financial officer and acting chairman, also left the firm. Officials from the Financial Industry Regulatory Authority Inc. conducted an exam of the firm's books to ensure that it had enough capital to keep its doors open. Acumen has 19 producing registered representatives and has offices in Connecticut and New York. “We felt that as an organization that the headlines and news was a distraction” to the advisers in serving clients,” Mr. La-Scala said. He declined to state his firm's gross revenue. David Levine, an executive vice president with GunnAllen Financial, said that no other top branch offices have departed and that overall, Gunn- Allen is in good shape. He said gross revenue last year was down about 10% from 2008, but declined to disclose any more specifics. E-mail Bruce Kelly at [email protected].

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.