← Broker database 2023-01-10
FINRA Issues Decision Against David Hixon for Failing to Provide Loan Documents (Appeal Pending)
According to FINRA, an Office of Hearing Officers decision was issued barring David Thomas Hixon from association with any FINRA member in all capacities for failing to provide information and documents requested by FINRA in connection with its investigation into the circumstances of his termination from his member firm. Hixon has appealed this decision to the National Adjudicatory Council, so the sanction is not currently in effect.
FINRA requested information and documents relating to Hixon's solicitation and acceptance of loans from two customers, repayment of a loan from a customer, and any documents relating to loans from customers or co-workers. In addition, FINRA wanted Hixon to provide information pertaining to a customer complaint against him regarding an annuity exchange.
Although Hixon submitted some information to FINRA, he failed to fully and timely provide much of the requested information and documents. Hixon failed to provide any documents—or state that he had none—relating to his loan and receipt of funds from a certain customer or relating to his repayment of that loan. Hixon also failed to confirm or deny whether he solicited or obtained a loan from any customers other than the customers that were named in FINRA's requests, and, if he did solicit other loans, he failed to state the intended purpose of any such solicited or obtained loan.
The information sought, and not provided, was material to FINRA's investigation and necessary to complete its regulatory mandate to fully investigate potential rule violations and to protect the investing public.
Because this decision has been appealed, it is not yet final and the bar sanction is not currently in effect. The National Adjudicatory Council will review the decision and may affirm, modify, or reverse the findings and sanctions. This case involves serious allegations regarding loans from customers and failure to cooperate with FINRA's investigation, but the ultimate outcome remains to be determined through the appeals process.