UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-88941; IA Release 40-5509, May 26, 2020: The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against William Andrew Hightower ("Respondent" or "Hightower"). The Commission finds that during the relevant period, Hightower was the president of Hightower Capital Group ("HCG"), an unregistered private company through which he conducted his financial advisory business. Hightower was associated with Legacy Asset Management, Inc., a SEC registered investment adviser, and Legacy Asset Securities, Inc., a SEC-registered broker-dealer, from September 2013 to June 2015. On October 16, 2019, Hightower pleaded guilty to two counts of wire fraud in violation of 18 U.S.C. §§ 1343 and 2 in United States v. William A. Hightower, Case No. 4:18-CR00600 (S.D. Tex.). As part of Hightower's plea agreement, he agreed to entry of an Order Imposing Money Judgment for $9.5 million, which was signed by the court on October 9, 2019. One wire fraud count to which Hightower pleaded guilty alleged, among other things, that on or about January 14, 2015, he transferred $900,000 from a victim's account to HCG and used those funds to pay back other investors and for personal spending, rather than for the intended investment purpose. Hightower also pleaded guilty to a second count alleging that on March 14, 2016, he transferred $800,000 of another investor's money into his account and used the money to pay back other investors and to fund his personal lifestyle.

Order

Bar (Permanent)

association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

5/26/2020

participating in any offering of a penny stock, including: acting as a promoter, finder, consultant or agent

Indefinite

5/26/2020

Time frame: 2007-2018 Allegations: Claimant alleges that former FA Hightower invested them in three fraudulent non-UBS investments.

$1,000,000.00

$200,000.00

Time frame: November 2007 - 2018 Claimant's counsel alleges UBS & Legacy failed to protect client's accounts from former FA Hightower's schemes and self-dealings and permitted him to engage in unauthorized trading and transfers to unauthorized destinations.

$950,000.00

Time frame: 1/2013 to 9/2016 Allegations: Plaintiffs alleges that at UBS and a subsequent employer Hightower recommended inappropriate investments including a "private annuity" and stock in a company Hightower controlled and that he forged documents and transferred money to an account he controlled.

$975,000.00

Time frame: NOT SPECIFIED Allegations: Claimants allege the FA liquidated their accounts without authorization and used the money to purchase shares in his company.

$250,000.00

Time frame: 6/2007 to 10/2015 Allegations: Plaintiffs alleges that at UBS and a subsequent employer Hightower recommended inappropriate investments including a "private annuity" and stock in a company Hightower controlled and that he liquidated positions and transferred funds to his company without authorization.

$1,000,000.00

Time frame: 2011 to 2017 Claimant is a CPA who alleges misrepresentations, omissions, and other intentional, negli-gent and/or grossly negligent behavior as well as recommendations made to purchase in-vestments without a reasonable basis and grounds to believe such recommendations were suitable for Claimant. Claimant further alleges the sole purpose for recommending the pri-vate investments were a designed scheme to convert his client's funds for his own use and to fraudulently conceal client's losses and his own misconduct.

Time frame: Not Stated Fraud, negligent misrepresentation, breach of fiduciary duty, and negligence relating to investments in private securities and alleged Ponzi scheme.

$500,000.00

Hightower was a subject of the customer's complaint against his member firm that asserted the following causes of action: breach of contract and warranties, promissory estoppel, unfair trade and deceptive practices, violation of Texas securities statutes, violation of Texas fraud statutes, intentional and negligent misrepresentations of fact, unjust enrichment, breach of fiduciary duty, and vicarious liability.

$1,282,235.87

Time frame: 2012 Claimant alleges that FA recommended the purchase of a high risk, illiquid and unsuitable unregistered security. Claimant further alleges omissions and misrepresentations regarding this recommended investment.

$150,000.00

$125,000.00

FINRA

Without admitting or denying the findings, Hightower consented to the sanction and to the entry of findings that he failed to respond fully to a request for documents and information made by FINRA in connection with an investigation into allegations that Hightower, while associated with a FINRA member firm, improperly referred customers to an unapproved private securities transaction. Specifically, Hightower failed to provide, among other things, a list of any customers he referred to the private securities transaction.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

10/7/2015

TIME FRAME: 2009-2013 THE CLAIMANTS COUNCIL ALLEGES UNSUITABILITY OF INVESTMENTS, MISREPRESENTATIONS AND UNAUTHORIZED TRADING IN ACCOUNTS.

$1,000,000.00

$40,000.00