B Riley Financial Inc (RILY)

Shares of B. Riley Financial Inc (RILY) dropped by 5.37% from $21.60 to $20.44 in the trading on Thursday, December 14, 2023. The reason why RILY down today is due to the revelations made during the company's analyst day. During this event, it was disclosed for the first time that RILY had a loan exceeding $200 million to Brian Kahn, in addition to $280 million in FRG (Friedman Industries Holdings). This information was previously undisclosed, and it is reported to be secured by FRG, as confirmed by research. Investors reacted to this newly revealed information, which had a significant impact on RILY's share price on December 14, 2023.

Shares of B. Riley Financial (RILY) dropped by 14.02% from $25.60 to $22.01 in the trading on Monday, Novemeber 13, 2023. The reasons why RILY down is due to concerns and uncertainties surrounding the company's links to an ongoing fraud investigation, specifically its involvement in the August buyout of Franchise Group.

• Fraud Investigation: B. Riley Financial is facing questions and investor nervousness regarding its links to an ongoing fraud investigation. The investigation appears to be related to a co-founder of Prophecy Asset Management, who pled guilty in a $294 million fraud case. The co-founder mentioned working with two co-conspirators, including the CEO of a multibillion-dollar retail franchise company, which has not been officially named but is reportedly Franchise CEO Brian Kahn.
• Investment in Franchise Group: B. Riley Financial invested $216.5 million in the management-led buyout of Franchise Group, which owns a portfolio of retail businesses. The connection between B. Riley's investment and the fraud investigation involving individuals associated with a retail franchise company has raised concerns among investors.