Investment advisory firm B. Riley Financial (NASDAQ: RILY) is facing some uncomfortable questions about its links to an ongoing fraud investigation, and investors are getting nervous. Shares of B. Riley are trading down 22% as of 11 a.m. ET Monday as the market tries to make sense of the reports.

B. Riley provides financial services including asset management services, equity research, and direct investments to corporate, institutional, and high-net-worth-individual clients. It is one particular investment, its involvement in the August buyout of Franchise Group, that has investors on edge.

The company invested $216.5 million in the $2.8 billion management-led buyout of Franchise, which owns a portfolio of retail businesses including Pet Supplies Plus, The Vitamin Shoppe, Badcock Home Furniture, and Sylvan Learning.

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Source Fool.com