Maryland

On or about December 20, 2021, Respondent entered into an AWC with FINRA wherein, without admitting or denying any findings, he consented to a four month suspension from association with any FINRA member in all capacities and a fine of $5,000, for, among other things, recommending that a customer purchase a type of complex, structured product known as a steepener without having a reasonable basis for his recommendations, lacking an understanding of the risks associated with steepeners when he recommended that the customer purchase them, and less than seven months after its purchase, recommending that the customer sell the steepener on the secondary market at a loss. Respondent is the subject of FINRA suspension, which provides the Division with grounds to suspend or revoke Respondent's registration.

Consent

Order to Show Cause and Order of Summary Suspension issued against Respondent was vacated pursuant to Consent Order. Respondent agreed to withdraw his investment adviser representative registration in Maryland, and agreed not to reapply in Maryland as an agent or investment adviser representative for a period of one year from the date of the Consent Order.

FINRA

Without admitting or denying the findings, Nixon consented to the sanctions and to the entry of findings that he recommended that a customer purchase a type of complex, structured product known as a steepener without having a reasonable basis for his recommendations. The findings stated that Nixon lacked an understanding of the risks associated with steepeners when he recommended that the customer purchase them. Specifically, Nixon failed to recognize the possibility that the yield curve on a steepener could quickly flatten, resulting in the customer having to choose between holding the products for an extended period while receiving little to no interest, or selling the products in the secondary market for a substantial loss of principal. Indeed, soon after one of Nixon’s recommendations that the customer purchase a steepener, the yield curve began to flatten. Subsequently, less than seven months after its purchase, Nixon recommended that the customer sell the steepener on the secondary market at a loss.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

All capacities

Four months

1/3/2022

5/2/2022

Mr. Nixon disagrees with the version of events as presented by FINRA. The inquiry that led to this disclosure was not initiated by a customer. Rather, this inquiry started as an exam of the books and records of his broker-dealer at the time, Paulson Investment Company (CRD 5670). The review period was Jan 2016 to Sept 2019. All clients signed a risk disclosure form that explained all risks prior to making an investment in a structured product. Trades were not permitted unless this disclosure was signed and on file. Mr. Nixon believes that all risks were fully explained and disclosed.

FINRA

Without admitting or denying the findings, Nixon consented to the sanctions and to the entry of findings that he exercised discretionary trading authority on behalf of his customers without prior written authorization from the customers and written approval from his member firm. The finding stated that after some of the discretionary trades had taken place, Nixon stated on an annual compliance questionnaire that he submitted to the firm that he had not exercised discretionary trading authority in any of his customer's accounts.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

All Capacities

15 business days

9/24/2019

10/14/2019

Fines paid in full on September 3, 2019.

Claimants allege violation of the Florida Securities Act, the Virginia Securities Act, common law fraud, securities fraud, breach of fiduciary duty, securities recommended and purchased were unsuitable, respondent negligently recommended unsuitable investments and negligently supervised representatives and investments, breach of contract, and Newport, Paulson and Onesto liability for their agent. Activities leading to the alegations occurred between 2013 to 2018.

$3,000,000.00

$192,500.00

CUSTOMER ALLEGES MISREPRESENTATION AND DECEIT, BREACH OF FIDUCIARY DUTIES, AND VIOLATIONS OF NASD AND SEC RULES IN CONNECTION WITH A MARGIN CALL AND SUBSEQUENT STOCK LIQUIDATION TO MEET THE MARGIN CALL. CUSTOMER SEEKS COMPENSATORY DAMAGES OF $4,500.00 PLUS PUNITIVE DAMAGES OF $4,500.00.

$9,000.00

$2,006.95

OCCURANCE ID # 561678 MR. NIXON DENIES ANY LIABITY TO THE CUSTOMER AND AFFIRMATIVELY STATES THAT SECURITIES IN THE CUSTOMER'S ACCOUNT WERE LIQUIDATED TO MEET A MARGIN CALL IN ACCORDANCE WITH ALL APPLICABLE RULES AND REGULATIONS.

F.N. WOLF & CO., INC.

Permitted to Resign

BRANCH MANAGER LEARNED OF 11-4-92 FELONY CHARGES,WHICH WERE LATER DISMISSED DUE TO LACK OF SUFFICIENT EVIDENCE AND WERE REDUCED TO A MISDEMEANOR CHARGE. ON 11/13/1992, I WAS PERMITTED TO RESIGN.

11/13/92 PERMITTED TO RESIGN PRIOR TO FORMAL CHARGES BEING BROUGHT AGAINST ME IN COURT.

1 COUNT OF GRAND LARCENY-FELONY-CHARGE DISMISSED-NON INVESTMENT RELATED. 1 COUNT OF BURGLARY-FELONY-CHARGE DISMISSED-NON INVESTMENT RELATED. 1 COUNT OF ATTEMPTED BURGLARY-FELONY-CHARGE DISMISSED-NON INVESTMENT RELATED. ALL THREE FELONY CHARGES WERE DISMISSED DUE TO LACK OF SUFFICIENT EVIDENCE. CHARGES WERE REDUCED TO ONE COUNT OF ATTEMPTED UNLAWFUL ENTRY-MISDEMEANOR-PLEAD GUILTY-NON INVESTMENT RELATED.

FELONY

CHARGE OF GRAND LARCENY WAS DISMISSED ON 12/8/92. CHARGE OF BURGLARY WAS DISMISSED ON 12/8/92. CHARGE OF ATTEMPTED BURGLARY WAS DISMISSED ON 12/8/92. CONVICTED OF MISDEMEANOR CHARGE OF ATTEMPTED UNLAWFUL ENTRY ON 12/8/92, PENALTY OF $90.00 PLUS COURT COSTS OF 58.00 PAID ON 12/08/92.

ON 11/04/1992, CHARGED BY FAIRFAX COUNTY POLICE WITH FELONIES OF GRAND LARCENY, BURGLARY AND ATTEMPTED BURGLARY. ON 12/8/1993, ALL THREE CHARGES WERE DROPPED AND I PLEAD GUILTY TO A MISDEMEANOR CHARGE OF ATTEMPTED UNLAWFUL ENTRY. I WAS FINED $90.00 PLUS COURT COSTS OF $58.00,