B. Riley Client Misses Date to Repay Investors in Collapsed Fund

Brian Kahn, whose role in the collapse of a US hedge fund has drawn scrutiny from prosecutors and battered shares of B. Riley Financial Inc., has been accused of defaulting on parts of a settlement meant to help repay investors who lost hundreds of millions of dollars.

Brian Kahn

Source: SEC Filings

The claim by a trustee overseeing the settlement is the latest twist in the failure of Prophecy Asset Management, where Kahn allegedly ran up massive losses before the fund collapsed in 2020. He is also a longstanding client of B. Riley, the Los Angeles-based investment bank, and the two have worked ...