Ex-Evercore banker pleads guilty to insider trading charges

Wed Apr 2, 2014 7:14pm EDT
 
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By Nate Raymond

NEW YORK (Reuters) - A former investment banker at Evercore Group pleaded guilty on Wednesday to criminal charges that he engaged in insider trading and used proceeds to pay a one-time mistress to support their child.

Frank Perkins Hixon Jr., a former senior manager at the bank, pleaded guilty to six criminal counts at a hearing in the U.S. district court in Manhattan.

The defendant was accused in February of using inside information to arrange trades in the stock of Evercore's parent and two other companies, through accounts held by Hixon's ex-girlfriend and his father.

The other two companies besides Evercore Partners Inc were Westway Group, which merged last year with EQT Infrastructure II, and Titanium Metals Corp, which was purchased last year by Precision Castparts Corp.

Authorities said the suspect trades occurred in accounts held by the mother of Hixon's young child in Austin, Texas and a close relative in Johns Creek, Georgia.

In a related civil lawsuit, the U.S. Securities and Exchange Commission said the accounts belonged to Destiny Wind Robinson, Hixon's former girlfriend, and Frank Hixon Sr., his father.

Hixon pleaded guilty to six counts including securities fraud, securities fraud in connection with a tender offer and making a false statement.

According to a plea agreement, Hixon could face 46 months to 57 months in prison under recommended federal guidelines, and has agreed to forfeit the $710,000 earned in the scheme. Sentencing is scheduled for August 1.   Continued...

 
Former senior managing director at Evercore Group Frank Perkins Hixon Jr. (L) speaks on his phone as he arrives at the federal courthouse in New York, April 2, 2014. REUTERS/Eduardo Munoz