[ad_1]
©Reuters. File photo: The seal of the U.S. Securities and Exchange Commission (SEC) is seen at its headquarters in Washington, DC, USA on May 12, 2021.REUTERS/Andrew Kelly/File Photo
(Reuters) – U.S. authorities are investigating B. Riley Financial’s dealings with a client involved in securities fraud and the use of his assets to help the investment bank obtain loans. Nomura Holdings (NYSE:), Bloomberg News reported.
The U.S. Securities and Exchange Commission (SEC) has questioned B. Reilly about his relationship with Brian Kahn in recent months, according to a report Sunday, citing people familiar with the matter.
Bloomberg earlier reported that Khan was one of two co-conspirators named by John Hughes, co-founder of hedge fund Prophecy Asset Management, who pleaded guilty to securities fraud last year. be.
Khan previously said in a statement to Reuters: “During my previous business relationship with Prophecy, I had no knowledge that Prophecy or its principals were allegedly defrauding investors, nor was I complicit in the fraud. ” he said.
SEC officials will scrutinize how Khan last year led the acquisition of Vitamin Shoppe owner Franchise Group (NASDAQ:) in a deal orchestrated by B. Reilly, Bloomberg reported. It is said that they are doing so. Nomura partially funded the deal by pledging some of Khan’s assets as collateral, it added.
B. Riley and the SEC did not immediately respond to Reuters’ requests for comment on this report.
B. Riley shares plunge after the company reported lower revenue and a net loss in the third quarter and was forced to reduce its investment in a $2.6 billion go-private deal involving a franchise group. did.
[ad_2]
Source link
