SEC Probes B. Riley Deals with Client Tied to Failed Hedge Fund

Bloomberg News reported that the Securities and Exchange Commission (SEC) is looking into B. Riley Financial’s dealings with a client who was associated with a failed hedge fund and the use of his assets to assist the investment bank in obtaining a loan from Nomura Holdings.

B. Riley said in a proclamation that it knew nothing about any SEC examination with respect to any of the issues and that it would coordinate in the event that such a circumstance happened.

According to sources cited by Bloomberg on Sunday, the SEC has conducted interviews about B. Riley and its relationship with Brian Kahn in recent months.

Khan is one of two co-plotters named by prime supporter of multifaceted investments Prediction Resource The executives John Hughes who last year confessed to protecting extortion, Bloomberg had announced prior.

SEC authorities have been examining the way in which Kahn drove a buyout of Nutrient Shoppe proprietor Establishment Gathering last year in an arrangement organized by B. Riley, the Bloomberg report said. It added that Nomura mostly funded the exchange, with a portion of Kahn’s resources sworn as security.

The SEC didn’t quickly answer a Reuters demand for input.