B. Riley Wealth Management has recently made headlines after hiring Francis Cunningham, a seasoned financial advisor with more than 26 years in the securities industry. Until November 2025, Francis Cunningham (CRD# 2105075) was affiliated with Stifel Nicolaus, a well-known financial services firm. Based in Memphis, Tennessee, Francis Cunningham has built a lengthy career, having also worked at Morgan Keegan & Company and First Tennessee Brokerage. His extensive experience and range of credentials might suggest professionalism and reliability, but recent events highlight why investors must stay vigilant, regardless of an advisor’s tenure or resume.
The Investor Complaint Against Francis Cunningham
In October 2025, an investor filed a formal complaint against Francis Cunningham. The complaint alleges unauthorized trading, churning, and an account transfer without the client’s permission while he was with Stifel Nicolaus. The damages being sought total $18,469. Such allegations, if true, not only represent major breaches of professional duty but also fundamentally undermine trust, which is the foundation of the client-advisor relationship.
Allegations of unauthorized trading mean Francis Cunningham is accused of buying or selling securities in a client’s account without first obtaining explicit consent. Even more concerning are allegations of churning, a practice that involves excessive trading within an account—primarily to generate commissions for the advisor, not to serve the client’s best interests. The unauthorized transfer of assets compounds matters, as it entails moving a client’s assets without permission, a direct contravention of fiduciary responsibilities.
The timeline of these events is notable. Not long after the complaint was filed, in November 2025, Stifel Nicolaus terminated Francis Cunningham, citing a “loss of confidence” and failures regarding proper order entry procedures. According to disclosures on his BrokerCheck record, this reason points to concerns serious enough to end a decades-long relationship.
Francis Cunningham’s Background: Experience and Credentials
Francis Cunningham brings a wealth of industry experience:
- Over 26 years in the securities industry
- Currently registered as both broker and investment advisor with B. Riley Wealth Management and B. Riley Wealth Advisors
- Previous affiliations include Stifel Nicolaus, Morgan Keegan & Company, and First Tennessee Brokerage
- Passed SIE, Series 63, Series 52TO, Series 52, and Series 7 exams
- Currently licensed in eight states: Arkansas, Florida, Georgia, Kentucky, Mississippi, South Carolina, Tennessee, and Texas
Importantly, before this recent complaint and termination, Francis Cunningham’s regulatory record was clean—no customer disputes, regulatory actions, or arbitration settlements were reported.
Understanding the Allegations: What Is Churning and Unauthorized Trading?
For investors, it’s important to clearly understand terms like “churning” and “unauthorized trading” because these practices can result in significant financial harm. According to FINRA rules, churning consists of excessive trading in a client’s account, driven primarily by a broker’s intention to generate commissions. It represents a violation of both FINRA Rule 2111 (Suitability) and Rule 2020 (Use of Manipulative, Deceptive or Other Fraudulent Devices).
Imagine hiring a landscaper to care for your garden, but instead of helping it flourish, the landscaper continually uproots and replants your flowers, charging you each time—whether your garden benefits or not. That, in principle, is what churning means for your investment portfolio: frequent trades that serve the broker, not you.
Unauthorized trading, meanwhile, occurs when an advisor executes transactions without the explicit approval of the client, unless the client has given what’s called “discretionary authority.” Even with such authority, trades must strictly comply with the client’s investment objectives and risk tolerances.
Unfortunately, improper actions such as those alleged against Francis Cunningham are not rare. A 2019 study published by the National Bureau of Economic Research found that 7% of financial advisors have at least one misconduct-related disclosure on their record, and those with misconduct records are significantly more likely to repeat offenses. More details about financial advisor misconduct and red flags can be found on Investopedia.
Potential Impact on Investors and What to Watch Out For
Investment fraud or negligent advice from financial advisors can damage investors’ financial futures. According to the FBI, more than $3 billion is lost to investment fraud annually in the United States, with common schemes including unsuitable recommendations, unauthorized trades, and excessive fee generation.
| Type of Misconduct | Potential Harm | Investor Response |
|---|---|---|
| Unauthorized Trading | Losses from unapproved trades, breach of trust | File a complaint, review account statements |
| Churning | Unnecessary fees, portfolio disruption | Check trade frequency, understand commission structures |
| Unsuitable Advice | Long-term portfolio underperformance, financial risk | Verify investment suitability, ask for rationale |
Investors who believe they have been harmed by their financial advisor have options. Complaints can be filed with FINRA through arbitration, and many investors have successfully recovered losses, sometimes holding both the advisor and the firm liable for damages. For more information on investor rights and complaint processes, see this resource.
How to Protect Yourself When Working With a Financial Advisor
In the wake of cases like that of Francis Cunningham, investors should consider these essential steps for safeguarding their assets:
- Regularly check your advisor’s BrokerCheck profile for any newly reported disclosures, complaints, or regulatory actions.
- Carefully review your account statements for unfamiliar transactions each month. If you spot any irregularities, ask your advisor for explanations—if answers are unclear, escalate the issue.
- Gain a clear understanding of your advisor’s compensation structure. Are you paying commissions or flat advisory fees? If the former, be alert for high activity in your account.
- Insist on transparency in all communications. Don’t hesitate to ask questions or request justification for investment recommendations.
- Stay informed about common scams and red flags by reading credible news sources like Bloomberg.
Remember, while experience and credentials matter, they do not guarantee integrity. Even advisors with decades-long, previously clean records can face serious complaints. It’s up to every investor to remain vigilant and proactive, ensuring their financial futures are in capable—and honest—hands.
Ultimately, the ongoing issue involving Francis Cunningham is a reminder for all investors: trust requires verification. Regular monitoring of your accounts and advisor’s history is non-negotiable, no matter how reputable your advisor may seem. Your financial security depends on informed oversight—today more than ever.
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