08:45 AM EDT, 08/12/2024 (MT Newswires) -- The US Securities and Exchange Commission is expanding its probe into B. Riley Financial ( RILY ) , looking into its handling of risk disclosures as well as Founder Bryant Riley's relationship with Franchise Group (FRG) CEO Brian Kahn, Bloomberg reported, citing people familiar with the matter.

The SEC is assessing whether B. Riley adequately disclosed the risks associated with some of its assets, the sources told Bloomberg. Investigators are also seeking information on interactions between Riley and Kahn, whose Franchise Group is one of B. Riley's larger investment holdings, as well as a review of possible improper trading by other insiders, according to the report.

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