Brian Kahn Charged Over Collapse of Prophecy Fund, US Says

Brian Kahn, the former head of Franchise Group Inc., was charged with conspiracy to commit securities fraud in the collapse of a hedge fund that prosecutors say cost investors $294 million.

Kahn is the third person accused of crimes stemming from the failure of Prophecy Asset Management, which US prosecutors have characterized as “a multi-year investment adviser fraud,” according to an Aug. 12 filing made public last week in federal court in Trenton, New Jersey.