A former U.S. investment banker was sentenced to 30 months in prison today for illegal insider trading and lying to the authorities.
Frank Hixon, Jr., 55, was sentenced to 30 months in prison, three years of supervised relief, fined $100,000, ordered to forfeit $710,000, and to pay more than $1.2 million to his former firm, New York-based Evercore Partners Inc.
Back in April, he pled guilty before U.S. district judge Ronnie Abrams to using inside information to trade and cause others to trade in the securities of Evercore, Westway Group Inc., and Titanium Metals Corporation, and to making false statements to FBI agents during their investigation, reports the U.S. Attorney for the Southern District of New York, Preet Bharara.
According to the evidence presented in the case, between April 2010 and January 2014, Hixon was a senior managing director with the mining and metals group of Evercore. At that time, he used material non-public information acquired in his work for Evercore to trade and cause trades in brokerage accounts belonging to his father, and the mother of his child.
It also reports that he then lied to Evercore following inquiries from the Financial Industry Regulatory Authority (FINRA) about the identity of individuals who traded ahead of a buyout offer for Titanium; directed his father and the mother of his child to lie to investigators; and, that he also lied to the FBI during its investigation.