Bryant Riley, one of the co-CEOs of B. Riley Financial Inc., is currently facing scrutiny for allegedly misreporting the number of shares he used as collateral for a personal loan from Axos Bank.

According to regulatory filings, Riley claimed to have pledged 4,389,553 shares in order to secure a $45 million revolving credit line that was established in March 2019. The company had reportedly approved this arrangement under its insider trading policy.

The discrepancy in the reported share count has raised concerns about the firm's compliance and transparency. This incident serves as a reminder of the importance of accurate disclosures in financial transactions, especially for executives in publicly traded companies. More information is expected to emerge as the situation unfolds.