Riley Financial Shares Fall 19%: SEC Launches Investigation, Market Reacts to Latest Developments.
- Shares of Riley Financial $RILY are down 19% inresponse to news of a securities fraud investigation by the SEC.
- The investigation involves the company's association with Brian Kahn, who is embroiled in the Justice Department's criminal investigation into the collapse of hedge fund Prophecy Asset Management in the 2020.
- The SEC is looking into Kahn's involvement in the buyout of retail company Franchise Group Inc, a transaction brokered by B. Riley and financed by Nomura.
- B. Riley denies receiving any communication from the SEC regarding the investigation and declares full cooperation if approached.
- The company accuses the short seller of tactics designed to destroy the company and expresses its commitment to investigating the dealings.
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