B. Riley Financial Services, a prominent investment bank based in Westwood, is facing significant challenges following an SEC investigation into its dealings with Brian Kahn, who led a $2.8-billion management-led buyout of Franchise Group. This probe has led to a drastic decline in the company's stock price, which has plummeted from nearly $90 three years ago to below $6. The firm, which employs over 2,000 people and provides services such as IPOs, reverse mergers, and turnarounds, is now one of the most highly shorted stocks on the market. The situation has been exacerbated by recent violations of protective measures imposed by the OCC and the departure of key personnel, including a co-head of mergers and acquisitions, as the subsidiary cut about 15 people. Additionally, B. Riley is attempting to raise cash by selling some of its core assets, further unsettling its brokers. “B. Riley is so broke right now,” said Nate Koppikar, a prominent short seller. The company's Q2 financials are also 93 days late.