"B. Riley Financial Under SEC Probe Over Client's Failed Fund"

The US Securities and Exchange Commission is investigating B. Riley Financial Inc.'s dealings with a client linked to a securities fraud case and the use of his assets to secure a loan from Nomura Holdings Inc. The client, Brian Kahn, is an unidentified co-conspirator in a criminal case related to the 2020 collapse of the Prophecy Asset Management hedge fund. The probe has led to a decline in B. Riley's stock and raised concerns about its relationship with Kahn. Nomura, one of B. Riley's major lenders, is also involved in the investigation. B. Riley denies any wrongdoing and states that it would fully cooperate with the SEC's inquiry.