<p>On February 1 of last year, The Bear Cave published on B. Riley and highlighted B. Riley’s ties to Brian Kahn, an alleged co-conspirator in a large fraud at Prophecy Asset Management. The Bear Cave <a href="https://thebearcave.substack.com/p/problems-at-a-billion-dollar-mess">wrote</a>,</p><blockquote><p>“Despite heavy criticism from a collection of prominent activist short-sellers… The Bear Cave believes B. Riley’s diminishing credibility is not being fully recognized by the market.”</p></blockquote><p>On February 15, The Bear Cave <a href="https://thebearcave.substack.com/p/more-problems-at-b-riley-rily">reported</a> that Marcum, B. Riley’s auditor, had engaged outside counsel to “represent Marcum in connection with regulatory matters” and highlighted that independent short seller Marc Cohodes called B. Riley “the biggest pound-for-pound financial fraud I’ve seen.”</p><p>Since then, B. Riley stock has fallen ~80% and the company has been unable to file financials past its March 2024 quarter.</p><p>Today, The Bear Cave reports on new litigation documents and an employee exodus that suggest additional significant near-term pressures for <strong>B. Riley</strong> (NASDAQ: RILY — $120 million). The Bear Cave also believes fraud allegations surrounding B. Riley could negatively affect <strong>CBIZ Inc</strong> (NYSE: CBZ — $4.16 billion).</p><p>Let’s dig in.</p>
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<a href="https://thebearcave.substack.com/p/even-more-problems-at-b-riley-rily">
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