Financial Advisor Howard Kavinsky’s Alleged Client Account Manipulation Rocks B. Riley Wealth

Financial Advisor Howard Kavinsky’s Alleged Client Account Manipulation Rocks B. Riley Wealth

As a financial analyst and legal expert with over a decade of experience, I have closely followed the recent allegations against Howard Kavinsky, a broker formerly registered with B. Riley Wealth Management. The seriousness of these allegations cannot be overstated, as they involve the falsification of account statements for multiple customers, including seniors, and misrepresenting investments in a hedge fund.

According to FINRA‘s findings, Kavinsky allegedly:

  • Falsified at least 190 consolidated account statements for at least eight customers
  • Overstated customers’ account balances
  • Reflected fictitious investments in a hedge fund
  • Provided false and misleading information to FINRA
  • Testified falsely during FINRA’s investigation

These actions, if proven true, represent a severe breach of trust between a financial advisor and their clients. Investors rely on the accuracy and integrity of their account statements to make informed decisions about their financial futures. When an advisor manipulates these statements, it can lead to significant financial harm and erode the trust that is essential in the client-advisor relationship.

Moreover, the fact that some of the affected customers were seniors is particularly concerning. Senior investors are often more vulnerable to financial exploitation and may have fewer years to recover from financial losses. As a society, we have a responsibility to protect our elderly population from such misconduct. According to a study by the Financial Industry Regulatory Authority (FINRA), senior financial fraud victims lose an average of $45,300 per fraud.

The consequences of Kavinsky‘s alleged actions extend beyond the affected individuals. Incidents like these can undermine public confidence in the financial industry as a whole. As Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” The financial industry must work tirelessly to maintain the highest standards of integrity and rebuild public trust when it is broken.

It is worth noting that Kavinsky has several disclosures on his FINRA BrokerCheck report, including financial disclosures, a pending customer complaint, an employment separation, and a judgment/lien. While these disclosures do not necessarily indicate wrongdoing, they can be red flags for investors considering working with a particular advisor.

FINRA Rule 2010 requires that brokers maintain high standards of commercial honor and principles of trade. Misrepresenting account values and investment holdings is a clear violation of this rule. If the allegations against Kavinsky are substantiated, he could face severe penalties, including fines, suspension, or a permanent bar from the industry.

The lessons from this case are clear: investors must remain vigilant, carefully review their account statements, and promptly report any discrepancies or concerns to their brokerage firm or the appropriate regulatory authorities. Financial advisors must uphold the highest ethical standards and remember that their clients’ trust is both a privilege and a responsibility. Investors who suspect they have been victims of investment fraud or received bad advice from their financial advisor can file a complaint with financialadvisorcomplaints.com to seek help and potential recovery of their losses.

Did you know that 1 in 5 Americans aged 65 or older have been victims of financial fraud or scams? This statistic underscores the importance of safeguarding our senior population from financial misconduct and ensuring that bad actors are held accountable for their actions.

Disclaimer: The information herein is derived from public sources and is provided "as is" without warranty of any kind. Legal matters may have subsequent developments, and market values may fluctuate. While we strive for accuracy, we make no representations about the completeness or reliability of this information. Readers should independently verify all content and seek professional advice as needed.
Scroll to Top