Fraud and Mismanagement Claims Hit $RILY and $ABR, Involving Key Figures

Recent discussions on Twitter have highlighted concerns regarding B. Riley Financial, Inc. ($RILY) and Arbor Realty Trust ($ABR), focusing on allegations of fraud, mismanagement, and uneconomic deals. Critics argue that listening to Arbor's calls from 2022 onwards reveals significant missteps in a low-interest rate environment. Charles Krusner (aka @AlexxBonds) of Krusner Capital, reportedly connected to Jim Cramer, is accused of promoting $RILY, raising questions about the legality of his actions. Andrew Capron, a barbecue chef, now running the $RILY board, is implicated in stock manipulation, with further allegations of involvement in a scam alongside convicted felons. The controversy extends to RILY's management, with Bryant Riley and insiders accused of mismanagement and owning significant portions of equity in failed private equity deals. The banking sector's confidence appears shaken, as indicated by Nomura's 13 visits to a website tracking the scandal, following issues with RILY's financial disclosures.