The Financial Industry Regulatory Authority (“FINRA”) announced August 16, 2019 that it issued a $5,000 fine and 15-day suspension to Paulson Investment Company (“Paulson”) securities broker Michael Nixon (CRD#: 2169631, Tampa, Florida). Evidently, the securities broker, who started working for Paulson beginning in December 2015, executed a Letter of Acceptance, Waiver and Consent (“AWC”), essentially not contesting FINRA’s findings of him making discretionary trades without client authorization. Here’s a summary of the AWC:
FINRA says that Michael Nixon violated NASD Rule 2510(b) which concerns discretionary trading. This rule prohibits discretionary trading unless the client consents in writing. Also, discretionary trading is prohibited unless the securities firm accepts the client’s account as discretionary. Evidently, Nixon traded on a discretionary basis in 19 client accounts, placing 66 trades from 2017 to 2018.
The AWC’s findings show that Michael Nixon did not ask for Paulson’s permission to use discretion in the 19 client accounts. Also, clients did not consent in writing to him using discretion. Evidently, in a compliance questionnaire Nixon completed in 2017, he reported to Paulson that he did not exercise discretionary authority in Paulson accounts. However, FINRA found that he did. Despite these findings, BrokerCheck shows that Nixon still works for Paulson.
Evidently, a client of both Paulson and Newport Coast Securities brought a dispute about Michael Nixon on July 9, 2018. Apparently, in FINRA Arbitration #: 18-02421, the Statement of Claim contains causes of action including violation of Florida Securities Act, dishonest and deceptive actions, breach of fiduciary duty, unsuitable trades, negligent investment recommendations, breach of contract, and negligent supervision. Supposedly, Nixon sold the client unsuitable corporate debt investments from 2013 to 2018 that caused losses for the client. The customer indicated that Nixon engaged in unsupervised transactions. Allegedly, Nixon also acted carelessly and put his interests before the client’s in facilitating the transactions. For this reason, the client alleged $3,000,000 in damages. This matter is unresolved.
Have you experienced losses by investing with Paulson broker Michael Nixon? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.
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