| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for General 2005 > News item |
Friedman Billings Ramsey broker barred, fined by NASD following insider trading charges
By Sheri Kasprzak
New York, Dec. 20 - John Mangan, Jr., a former broker with Friedman, Billings, Ramsey & Co. and a hedge fund manager, was fined and barred by the National Association of Securities Dealers for alleged insider trading related to a 2001 private placement for CompuDyne Corp.
Mangan must pay a fine of $125,000 and will not be allowed to associate with any NASD-registered firm in the future.
According to a statement from the NASD released Tuesday, Mangan "deceptively obtained shares in a PIPE transaction, improperly sold the shares short and shared in profits from the shares without obtaining permission from FBR."
The NASD contends that Mangan wanted to invest in the $29 million CompuDyne PIPE from September 2001 through one of a group of hedge funds he managed with a partner.
"Mangan contacted senior FBR officials to inquire whether the hedge fund could invest in the CompuDyne PIPE," said the NASD statement. "These officials told Mangan in substance that a person associated with FBR should not invest in the CompuDyne PIPE and refused Mangan permission to buy shares in the PIPE.
"Nevertheless, Mangan arranged for HLM Securities LLC, an investment advisor owned by Mangan's partner, to buy 80,000 shares in the PIPE."
The restricted stock, the NASD said, was sold at the below-market price of $12.00 per share.
Mangan, the NASD statement said, has neither admitted nor denied the charges against him.
In May, Hilary Shane, a former hedge fund manager with First New York Securities, was barred and fined more than $1.45 million by the NASD on insider trading charges related to the CompuDyne PIPE.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.