Wall Street watchdog FINRA is investigating trading activity prior to a failed takeover bid for Douglas Elliman. The probe seeks details from the luxury real estate brokerage about who knew of the offer before it became public in late May. FINRA oversees U.S. market trading and refers insider trading cases to the SEC annually. Douglas Elliman faces scrutiny over a failed takeover bid by rival Anywhere Real Estate, with shares soaring 50% on May 23. FINRA requested information on events leading up to the bid, including board minutes and communication with advisers. Responding to FINRA, Douglas Elliman disclosed a $250,000 stock purchase by board director Patrick Bartels. The company cleared Bartels’ trade, which was the only one highlighted in its response. The FINRA review has not been linked to any specific trades, and Bartels has not commented on the matter. Douglas Elliman, a prominent New York brokerage, is known for high-profile deals and reality TV appearances. The firm faces legal challenges and financial difficulties, including consecutive quarterly losses. FINRA, an SEC-monitored body, monitors equity market trading for manipulation, fraud, and insider trading. Anywhere Real Estate’s talks with Douglas Elliman fizzled out in June, with a revised offer deemed inadequate by the brokerage. Compass later agreed to acquire Anywhere in a $4.2 billion deal.

Read more at Yahoo Finance: Exclusive-US watchdog probes real estate firm Douglas Elliman over Anywhere bid