Dec. 11 at 3:58 PM
$RILY Former Franchise Group CEO Brian Kahn's relationship with B. Riley Financial's Bryant Riley was a long-term business partnership that ended in a major financial scandal and legal issues.
· Brian Kahn: He has pleaded guilty to criminal charges related to the Prophecy Asset Management fraud. He also faces a separate civil lawsuit from the SEC alleging he defrauded investors of over
$350 million.
· Bryant Riley & B. Riley Financial: The company and its founder have faced severe consequences. They have received subpoenas from the SEC regarding their dealings with Kahn. To recover, B. Riley has sold off major business units, restructured debt, and is even rebranding to "BRC Group Holdings" to distance itself from the scandal. The firm is also struggling with regulatory filings and faces potential delisting from Nasdaq.
· Franchise Group: The retail holding company, which included brands like The Vitamin Shoppe and Pet Supplies Plus, filed for Chapter 11 bankruptcy in November 2024.