The U.S. Securities & Exchange Commission carried out interviews in recent months investigating B. Riley Financial’s (RILY) relationship with Brian Kahn, a key client who was linked to a securities fraud, and the use of his assets to help the investment bank obtain a loan from Nomura Holdings (NMR), people familiar with the matter told Bloomberg’s Donal Griffin and David Voreacos. The firm says it hasn’t received anything from the SEC on the matter, the report noted. Officials have been scrutinizing how Kahn led a buyout of a retail business Franchise Group in a deal arranged last year by B. Riley that was partly financed by Nomura, the report added. B. Riley shares are down $1.99, or 10%, to $18.19 in Monday pre-market trading following Bloomberg’s report.
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