B. Riley Financial has been losing financial advisors, executives, and investment bankers for months, as the firm’s stock price has plummeted on turmoil and bad news, and the latest loss is one of the senior executives of its registered investment advisor, Thomas Kowalczyk.
Kowalczyk’s title was president of B. Riley Wealth Advisors Inc., with $7.6 billion in client assets, according to the firm’s Form ADV.
According to his profile on LinkedIn, his employment at B. Riley Wealth Advisors ended last month. A senior brokerage executive, who spoke confidentially to InvestmentNews about the executive, said Kowalczyk left B. Riley near mid-December.
“Could he eventually convince more B. Riley advisors to move elsewhere?” asked the executive. “I don’t know.”
Mike Mullen remains the CEO of B. Riley Wealth Advisors.
“We wish Tom the best and thank him for all of his contributions while here,” a B. Riley spokesperson wrote in an email. “B. Riley Wealth has a robust and talented team of professionals and financial advisors that remains committed to serving our clients day in and day out.”
B. Riley Financial has been facing severe scrutiny for more than a year after it led a $2.8 billion buyout of the Franchise Group in August 2023.
The Franchise Group, the owner of brands including the Vitamin Shoppe and Pet Supplies Plus, filed for bankruptcy protection in November after months of losses and turmoil surrounding its founder and its backer B. Riley Financial, Bloomberg News reported.
The share price of B. Riley Financial stock – with the ticker RILY – has fallen 79 percent in the past 12 months and on Tuesday afternoon was trading at $4.72.
Kowalczyk, a 15-year industry veteran, could not be reached Tuesday to comment.
Prior to his stint at B. Riley, he had led the RIA of National Securities Corp., which B. Riley acquired in 2022 after taking a large stake in the firm four years earlier.
B. Riley has been losing key personnel, including financial advisors, in the midst of the firm’s problems.
Brian Todd Cohen on Nov. 18 jumped to Ceros Financial Services Inc., in Westbury, New York, according to his BrokerCheck profile.
And on Nov. 14, Russ Zalatimo, head of HudsonPoint Capital and based in Jersey City, New Jersey, left B. Riley for Arete Wealth Management, also according to BrokerCheck. Arete, which has 11 registered reps and $200 million in assets, focuses on alternative investments.
Eric Lyon, a former senior managing director at B. Riley Wealth Management, jumped in October to Kestra Investment Services. According to Kestra, Lyon’s team, Wealth Empowerment Financial Strategies, had more than 30 advisors and staff and works with $1.4 billion in client assets.
And Philip Wunderlich, the scion of the founder of the former Wunderlich Securities, which B. Riley acquired in 2017, left the firm in September and joined Prospera Financial Services Inc.
As part of its overhaul, B. Riley Financial at the start of November said it was selling a piece of its employee wealth management group to Stifel Financial Corp. for $27 million to $35 million in cash.
The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.
The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.
Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.
With more than $13 billion in assets, American Portfolios Advisors closed last October.
Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
