B. Riley Faces Wider Probe on Risk Disclosures, Ties to Kahn
- SEC inquiry looks at whether investors got accurate picture
- Agency probes interactions of CEO and Franchise Group founder
This article is for subscribers only.
B. Riley Financial Inc.’s shares lost more than half their value amid a new round of writedowns and a widening US investigation into whether it gave investors an accurate picture of its financial health.
The US Securities and Exchange Commission is assessing whether the Los Angeles-based boutique investment bank adequately disclosed the risks embedded in some of its assets, people familiar with the matter said. The agency is also seeking information on the interactions between founder Bryant Riley and longtime business partner Brian Kahn, the former chief executive of Franchise Group Inc., the people said. Franchise Group, or FRG, is one of B. Riley’s larger investment holdings.