David Thomas Hixon of Scottsdale, Arizona, a stockbroker formerly registered with Morgan Stanley, is the subject of an enforcement action initiated by Financial Industry Regulatory Authority (FINRA) in which the regulator is seeking sanctions against Hixon based upon allegations that Hixon failed to cooperate with a FINRA investigation. FINRA Case No. 2021070867702 (July 20, 2022).
According to the Complaint, FINRA learned in March 2021 that Hixon was terminated as a stockbroker for allegedly borrowing from a customer and for asking a different person for a loan. The Complaint states that Hixon’s Form U5 was later changed to identify a customer’s complaint.
FINRA started an investigation into Hixon’s activities in March 2021 to determine if he violated FINRA rules or federal securities laws. Hixon was asked on July 15, 2021, to provide information to investigators concerning the alleged solicitation of customer loans. FINRA states that Hixon did not respond to that request and an additional one. He was then suspended from associating with any FINRA member in any capacity.
On March 10, 2022, Hixon told FINRA that he did not get its prior requests. The Complaint alleges that on March 17, 2022, Hixon provided some information to FINRA and asked that his suspension be lifted. FINRA informed Hixon that he failed to fully respond to the requests. Hixon has not responded further, according to the regulator. Therefore, Department of Enforcement alleges that Hixon violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure also shows that on February 22, 2021, a customer initiated investment related complaint involving Hixon’s conduct was settled for $10,615.00 in damages based upon allegations that Hixon made misrepresentations concerning a variable annuity exchange when Hixon was associated with Morgan Stanley Smith Barney.
On March 1, 2021, Morgan Stanley Smith Barney discharged Hixon based upon allegations that Hixon borrowed from a customer.
Hixon was associated with Morgan Stanley from 2015 to 2021.
