SEC Charges Investment Banker in $950K Insider Trading Scam Involving Child Support Payments

The Securities and Exchange Commission has put out an emergency action against Frank “Perk” Hixon Jr., an investment banker based in New York. Hixon Jr. is charged with insider trading that garnered him $950,000 in illicit profits that he purportedly used in lieu of making child support payments to the mother of his son.

According to the regulator, Hixon Jr. regularly went into Destiny “Nicole” Robinson’s account and made trades using confidential information that he got from his job. Illegal trades or tips in three public companies’ securities were involved, including trading using nonpublic data about Titanium Metals Corporation before its merger announcement, trading prior to a number of big announcements by Westway Group, and trading in his firm Evercore Partners’ securities before record earnings were made public in early 2013. Hixon Jr. also allegedly made illegal trades in his dad’s brokerage account.

However, when asked by his employer about the suspicious trading in both accounts, Hixon Jr. denied that he knew either his father or Robinson. He even swore in a declaration that he didn’t recognize the name of the city where his father had been residing for over a quarter of a century. Hixon Jr. has since been fired.

Now, a federal judge is granting the SEC’s request for an emergency order to freeze the brokerage account under Robinson’s name. The SEC is accusing Hixon Jr. of violating the Securities and Exchange Act of 1934’s antifraud provisions. The agency wants permanent injunction, disgorgement, and financial penalties. Meantime, the US Attorney’s Office for the Southern District of New York has filed a criminal case against Hixon Jr.

Our broker fraud lawyers represent investors who have lost money because of the misconduct of others. Call Shepherd Smith Edwards and Kantas, LTD LLP today.

SEC Charges Wall Street Investment Banker With Insider Trading in Former Girlfriend’s Account to Pay Child Support, SEC, February 21, 2014

Read the SEC Complaint (PDF)

More Blog Posts:

Mixed Securities Verdict Reached in SEC Case Against Texas-Based Life Partners Holdings, Stockbroker Fraud Blog, February 19, 2014

Judge Reject’s AIG’s Bid to Delay $8.5B Billion Mortgage Backed-Securities Settlement with Bank of America Corp. “Hostage”, Institutional Investor Securities Blog, February 21, 2014
US Supreme Court Hears Oral Argument on the Impact of SLUSA on the Stanford Ponzi Scams, Institutional Investor Securities Blog, October 17, 2013

Contact Information