FBR proposes settlement in trading investigation

Jeff Clabaugh
April 27, 2005

Friedman Billings Ramsey has offered to pay $7.5 million to settle a Securities and Exchange Commission investigation and a separate National Association of Securities Dealers investigation into a private stock placement four years ago. The Arlington-based company also acknowledged that one of its co-founders was involved in the questionable trades.

Under the proposed settlement, FBR, without admitting any wrongdoing, is offering to pay a civil penalty of $3.5 million and consent to a review by an independent consultant to settle the SEC case. It is also offering to pay a $4 million fine to settle a similar NASD investigation.