Douglas Elliman investigated over insider trading: Reuters
Douglas Elliman is being investigated over the alleged potential acquisition by Anywhere, according to a report published by Reuters on Wednesday.
The report cited letters related to the matter seen by Reuters and conversations with three people familiar with the issue. According to these sources, Douglas Elliman is under scrutiny for potential insider trading related to the rumored Anywhere deal.
According to Reuters, Financial Industry Regulatory Authority (FINRA) is in the “early stages” of a probe into the brokerage and has asked the firm to provide information on who internally knew about the potential acquisition, as well as information about stock trades. The report notes that FINRA allegedly told Douglas Elliman that the information request “should not be construed as an indication that FINRA has determined that any violations…have occurred.”
While the rumored potential acquisition has not been confirmed to HousingWire by either firm, sources told Reuters that a deal was in the works, and that Douglas Elliman had accepted an offer, but Anywhere decided to revise its offer before the deal eventually fell through.
According to the Reuters report, on the same day Anywhere presented its revised offer, Patrick Bartles, a Douglas Elliman board member, requested permission to purchase $250,000 in company stock. The report states that the request was approved and executed “in the following days.” While other trades may have occurred, Bartles was the only one noted in Douglas Elliman’s reply to FINRA, according to Reuters.
After the news of the rumored acquisition broke, Douglas Elliman’s stock rose nearly 50%.
Douglas Elliman has not yet returned HousingWire’s request for comment. Earlier this week, Compass announced it had acquired Anywhere in an all stock deal.
