Remember Frank Perkins Hixon Jr.? Made something of a name for himself when he became the first Evercore employee in history to be accused of insider trading, which he apparently did in part to raise funds to support the child he had with Destiny Wind Robinson? He may be going away for a while. Also, he's sorry.
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. Hixon, who is married, told authorities he ended his relationship with Robinson in 2009, about the time the child was born, according to court documents. The SEC's lawsuit said that text messages between the two had suggested the insider trading was at least partly intended to support their child. "I am sorry these actions affected my family and my friends," Hixon said in court.