Stock Gamble: B. Riley Financial Chief Violates Disclosure Obligations

Bryant Riley, the Co-CEO of B. Riley Financial, failed to accurately report the exact number of shares he pledged for a personal loan at Axos Bank. According to a recent regulatory filing by B. Riley, Riley previously reported in corporate documents that he had pledged 4,389,553 shares as collateral for the loan, which was approved according to the company's insider trading control policies. The shares in question serve as collateral for a revolving credit line amounting to $45 million, established in March 2019. Despite providing this collateral and the necessary disclosures, the lack of precise reporting was a violation of the expectation of transparent communication from an executive leader.