RILY - B. Riley Reportedly Face Regulatory Scrutiny Amid Controversial Dealings With Key Client Linked To Securities Fraud; Stock Tanks | Benzinga
B. Riley Financial Inc (NASDAQ:RILY) is reportedly facing a probe by U.S. authorities over its dealings with Brian Kahn, a key client linked to securities fraud, and the utilization of his assets to secure a loan from Nomura Holdings Inc (NYSE:NMR).
The U.S. Securities & Exchange Commission (SEC) has reportedly conducted interviews regarding B. Riley and its association with Kahn, reportedly identified as one of the two co-conspirators by John Hughes, the co-founder of Prophecy Asset Management, who has been implicated in a securities fraud case.
This information was reported by Bloomberg, which previously covered John Hughes’ guilty plea in the same case last year.
The investigation explores Kahn’s role in orchestrating the buyout of retail business Franchise Group last year, ...