Erez Law is currently investigating Paulson Investment Company LLC financial advisor Michael Nixon (CRD# 2169631) regarding investment losses. Nixon has been registered with Paulson Investment Company LLC in Tampa, Florida since 2015.
In September 2019, Nixon was sanctioned to a $5,000 civil and administrative penalty and fine and was suspended by FINRA for 15 days after he 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.”
Nixon has been the subject of two customer complaints between 1998 and 2018, according to his CRD report. The most recent complaint is regarding:
July 2018. “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 allegations occurred between 2013 to 2018.” The customer sought $3 million in damages and the case was settled for $192,500. This case was regarding corporate debt.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Paulson Investment Company LLC may be liable for investment or other losses suffered by Nixon’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.