B Riley says internal review found no bank involvement in alleged Prophecy misconduct

By Thomson Reuters Feb 22, 2024 | 6:55 AM

(Reuters) – B Riley Financial said on Thursday an internal review had found the investment bank had no involvement with or knowledge of any of the alleged misconducts concerning Prophecy Asset Management, sending its shares up 12% before the bell.

The bank has been contending with investor worries after a Bloomberg News report last year said Franchise’s former CEO Brian Kahn was one of the co-conspirators in a securities fraud case involving Prophecy Asset Management.

Kahn has vehemently denied the allegations.

B Riley had participated in the buyout of vitamin and supplements maker Vitamin Shoppe’s owner Franchise Group last year.

(Reporting by Niket Nishant in Bengaluru; Editing by Shinjini Ganguli)