Related Federal Cases
Ex-Evercore Director Sentenced for Insider Trading
A former Senior Managing Director of Evercore Group, LLC has been sentenced to 30 months in prison for insider trading and making false statements to FBI agents.
Frank Perkins Hixon, Jr. was sentenced by U.S. District Judge Ronnie Abrams in Manhattan federal court for using inside information to trade and cause others to trade in the securities of Evercore, Westway Group Inc. and Titanium Metals Corporation.
According to the Information and other documents filed in Manhattan federal court, as well as statements made during court proceedings, between April 2010 and January 2014, Hixon used material non-public information that he acquired as part of his employment with Evercore to trade and cause trades in brokerage accounts belonging to the mother of his young child, who lived in Austin, Texas, and to Hixon’s father, who lived in Johns Creek, Georgia.
In 2011, Hixon led an Evercore team in advising Westway about a non-public offer from another company to purchase some of its business components. While the offer was not announced publicly until December 15, 2011, Hixon purchased, and caused to be purchased, 229,000 shares of Westway for Individual A’s brokerage account.
Later, in 2012, Hixon made additional purchases of Westway shares for Individual A’s account, in advance of a tender offer for Westway’s outstanding equity securities that was announced on December 20, 2012. Profits reaped from sales of those shares amounted to approximately $104,000.
In October 2012, Hixon was invited to meet with a Special Committee of Titanium’s board of directors to discuss a potential engagement in connection with an unspecified $3 billion transaction. Hixon learned the approximate offer price, and that the transaction was likely to close before year’s end.
Within approximately one hour of the meeting with the Special Committee, Hixon began buying 20,000 Titanium shares for Individual A’s account from a mobile device he was using in London, England. Eight days later, after Hixon had returned from England, 20,000 more shares of Titanium were purchased for Individual A’s account, mostly through logins from Evercore’s Manhattan office.
Hixon caused a profit of approximately $180,000 from the sale of Individual A’s Titanium shares. He was also accused of making false statements to FBI agents during the investigation into his insider trading.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release ↗
ðŸâ€â€™ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime