| NEW YORK
NEW YORK Aug 1 A former investment banker at
Evercore Group was sentenced to 2-1/2 years in prison on Friday
for engaging in insider trading and using the profits to pay his
former mistress so he could maintain a relationship with their
Frank Perkins Hixon Jr., a former senior manager at the
bank, was also ordered to pay $810,000 in fines and forfeitures
to the government and $1.2 million in restitution to Evercore by
U.S. District Judge Ronnie Abrams in New York. He previously
pleaded guilty in April to six counts, including securities
Prosecutors accused Hixon of using inside information to
arrange trades in the stock of Evercore's parent company,
Evercore Partners Inc, and two other companies: Westway
Group, which merged last year with EQT Infrastructure II, and
Titanium Metals Corp, which was bought last year by Precision
In a related civil lawsuit, the U.S. Securities and Exchange
Commission said the trades in question occurred in accounts
belonging to Destiny Wind Robinson, Hixon's former girlfriend,
and his father, Frank Hixon Sr.
Hixon, who is married, ended his relationship with Robinson
soon after their child was born in 2008, according to court
Prosecutors also said Hixon lied to federal agents and to
Evercore about his conduct.
In a lengthy statement on Friday, Hixon told Abrams that he
had engaged in the trading with Robinson as a way of staying in
touch with her to avoid losing contact with his daughter. At the
time, he said, he was terrified Robinson would disappear.
"It was truly really rooted in deep fear of losing something
tremendously important, and a fear that my daughter would lose
me, I would lose her, and it would never be explained to her,"
he said, according to a transcript of the hearing.
A spokesman for the bank has previously said it reported the
suspicious trading immediately upon discovering it and
cooperated fully with authorities.
Robinson and Hixon's father were not criminally charged but
are named as defendants in the SEC's lawsuit.
The criminal case is U.S. v. Hixon, U.S. District Court,
Southern District of New York, No. 14-0341. The civil case is
U.S. Securities and Exchange Commission v. Hixon, U.S. District
Court, Western District of Texas, No. 14-158.
(Reporting by Joseph Ax; Editing by Bernard Orr)