Oh, That Father, Alleged Insider Trader Says
AUSTIN, Texas (CN) - A Wall Street investment banker made nearly $1 million by illegal inside trading in a former girlfriend's account, some of which he used to pay child support, the SEC claims in court.
"This is an insider-trading case involving an investment banker who repeatedly used information learned in the course of his business to enrich himself, his father, and the mother of his child by conducting or prompting trades that resulted in profits of at least $950,000," the SEC says in its federal complaint.
It sued Frank Perkins Hixon Jr., Frank P. Hixon Sr., and Junior's ex and the mother of his child, Destiny W. Robinson.
When confronted with evidence, the cheeky banker denied knowing his own father and denied knowing the mother of his child, the SEC says in the complaint.'
"Defendant Frank Perkins Hixon, Jr. has spent at least the last 12 years of his career as an investment banker specializing in the mining, metals, and materials industries," the lawsuit states. "In this capacity, he learned market-moving information about companies prior to that information becoming public, including information related to tender offers. After obtaining this material, nonpublic information, Hixon Jr. made, or tipped others so they could make, timely trades in the brokerage accounts of his father, relief defendant Frank P. Hixon, Sr., and the mother of his child, relief defendant Destiny Robinson. When confronted with evidence of this illegal trading, Hixon Jr. denied knowing both his father and Robinson."
He also denied knowing the name of the city where his father had lived more than 25 years, the SEC said in a statement.
The SEC called Robinson his former girlfriend in a statement announcing the lawsuit.
A federal judge granted the SEC's request to freeze Robinson Jr.'s brokerage account, which contained $1.2 million, most of it from the illegal trading, the SEC said in the statement.
Hixon Jr. is accused of making at least $950,000 from his illegal inside trading. His company fired him. His father and ex are named as defendants solely for the purpose of recovering the allegedly ill-gotten swag.