HomeNewsB. Riley Under SEC Scanner for Alleged Involvement in Financial Misconduct

B. Riley Under SEC Scanner for Alleged Involvement in Financial Misconduct

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  • B. Riley is reportedly under investigation by the U.S. SEC for its transactions with Brian Kahn, an alleged participant in a major financial fraud case.
  • While B. Riley denies awareness of the SEC probe, Nomura, another financial player involved, remains out of the primary focus of the investigation.

In a significant development within the financial sector, investment bank B. Riley reportedly finds itself in the midst of an undisclosed investigation by U.S. authorities. This probe, as per a Bloomberg report citing anonymous sources, relates to the bank’s dealings with Brian Kahn, allegedly involved in a major financial misconduct case under the U.S. Department of Justice.

B. Riley’s Position and Recent Ventures

B. Riley has publicly stated its unawareness of any ongoing investigation by the U.S. Securities and Exchange Commission (SEC). The firm expressed readiness to cooperate fully should an investigation surface, countering the report as echoing “baseless allegations” by short sellers. This response comes amidst the bank’s significant foray into the Bitcoin mining industry, with notable investments such as a $100 million equity sale to Bitcoin miner Iris Energy and a $70 million loan to Core Scientific.

The Brian Kahn Connection

The identity of Brian Kahn remains officially undisclosed in the context of this case. However, the Bloomberg report associates Kahn with Franchise Group Inc., suggesting his role as CEO. This connection emerged from a recent guilty plea by John Hughes, co-founder of Prophecy Asset Management, for committing securities fraud, where he hinted at a co-conspirator leading a major retail franchise company.

B. Riley’s historical ties with Kahn reportedly include aiding him in a management buyout of Franchise Group. Furthermore, Nomura, a prominent Japanese financial group, allegedly facilitated a $600 million loan to B. Riley to support Kahn’s takeover, based on loan documents referenced in the report.

Nomura’s Crypto Involvement and the Probe’s Scope

Nomura, known for backing crypto-related entities like Komainu and Ledger, is mentioned in the report but not as the primary focus of the investigation, which is still in its early stages. The extent of Nomura’s involvement in the alleged financial misdealings remains unclear.

As the SEC has not yet responded to inquiries for comments and Nomura is unreachable, the full implications of this probe are yet to unfold. This investigation highlights the intricate web of financial dealings and the vital role of regulatory oversight in maintaining the integrity of financial markets, particularly as they intersect with the burgeoning world of cryptocurrency.

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AnnJoy Makena
AnnJoy Makenahttps://www.ethnews.com
Annjoy Makena is an accomplished and passionate writer who specializes in the fascinating world of cryptocurrencies. With a profound understanding of blockchain technology and its implications, she is dedicated to demystifying complex concepts and delivering valuable insights to her readers. Business Email: info@ethnews.com Phone: +49 160 92211628