B. Riley Financial Again Delays Filing Audited Results
From the desk of Jim Eccleston at Eccleston Law
B. Riley Financial Inc. has encountered a setback in filing its audited results within an extended timeframe, adding to existing pressure amid concerns raised by short sellers regarding its association with a former business partner.
Despite an extension period, the company failed to submit its annual report on time but assured stakeholders of ongoing efforts with auditors to complete and file the report "as soon as reasonably practicable," as reported by AdvisorHub.
The delay in filing has intensified scrutiny on B. Riley, particularly regarding its relationship with Brian Kahn, the founder of Franchise Group Inc. B. Riley's involvement in assisting Kahn with a buyout of Franchise Group, extending loans to him, and utilizing his assets to support a loan from Nomura Holdings Inc., has raised concerns among investors.
According to AdvisorHub, B. Riley attributed the filing delay to the board's review of transactions with Kahn, who was identified as an unidentified co-conspirator in a US Department of Justice criminal case linked to the collapse of the Prophecy Asset Management hedge fund in 2020. Kahn has denied any wrongdoing, asserting his losses during the hedge fund's collapse, while B. Riley maintains it had no involvement or knowledge of the events at Prophecy.
While the US Securities and Exchange Commission allows a customary 15-day extension for overdue reports, B. Riley also missed last year's initial deadline due to recent acquisitions but managed to file within the grace period. The firm has indicated that it anticipates no significant changes to its financial results for the fourth quarter and full year of 2023.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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