Eagle in Md. to pay $13M to resolve SEC probe

Eagle Bancorp in Bethesda, Md., will pay nearly $13 million to resolve a longstanding probe by the Securities and Exchange Commission into its ties to a former Washington councilman.

The $11 billion-asset company disclosed in a regulatory filing that it will pay a $10 million civil money penalty and $2.6 million in disgorgement as part of the settlement. 

Eagle, which did not admit or deny the SEC's allegations, agreed to enter into an administrative cease-and-desist order. 

The agreement is subject to finalization and approval by the SEC. 

The SEC’s investigation was first disclosed three years ago. A separate investigation by the Federal Reserve is ongoing.

The company in February agreed to pay $7.5 million to resolve a class-action lawsuit filed in mid-2019. The litigation alleged that Eagle violated securities laws by failing to properly disclose its regulatory and legal issues.

Eagle has said the the probes are tied to "the relationship of the company and certain of its former officers and directors with a local public official." Multiple news outlets have suggested that the politician is Jack Evans, who resigned in 2020 after allegations of influence peddling.