Miami Broker Suspended for Five Months for Undisclosed Private Securities Transactions
The Financial Industry Regulatory Authority’s (“FINRA”) Department of Enforcement announced that Leon Edward Dixon (CRD No. 723675), a registered financial advisor based in Miami, Florida, was sanctioned for participating in undisclosed private securities transactions. At the time of the alleged misconduct, Mr. Dixon was employed as a registered securities broker at AXA Advisors, LLC. Without admitting to or denying any wrongdoing in the case, Mr. Dixon consented to the penalties, which included a five month suspension from the securities industry and a civil fine of $7,500.
The Allegations of Misconduct Against Leon Edward Dixon
FINRA investigators believe that from April of 2014 through October of 2015, Leon Edward Dixon participated in several private securities transactions, with clients of his firm, without making any of the required disclosures to his employer. According to the FINRA settlement, Mr. Dixon put $18,000 of his own money into a startup company that purportedly offered broadband services and other telecommunications services. FINRA’s Department of Enforcement believes that Mr. Dixon was also able to bring in more than $180,000 in investment to the firm from customers of AXA Advisors, LLC. In relation to these undisclosed private transactions, Mr. Dixon allegedly received more than $15,000 in compensation, an amount nearly equivalent to what he himself invested into this telecom startup company.
Leon Edward Dixon Put His Clients Assets At Risk
By failing to disclose the private securities transactions to his member firm, Mr. Dixon violated FINRA Rule 3280. This industry regulation requires disclosure of all outside business activities. On two separate annual compliance questionnaires, Mr. Dixon incorrectly stated that he had not engaged in any private securities transactions, a fact he clearly knew to be false. Not only did Mr. Dixon violate industry standards, but he put investors’ money at risk.
Financial advisors are only permitted to sell investments approved by their firm. However, under several different legal theories, the employer can be held liable for the acts of its employees or for its own negligent supervision of the financial advisor. In this case, customers who purchased these unapproved investments may be able to recover from AXA Advisors.
Were You a Victim of Investment Fraud in Florida?
Our legal team can help. Carlson & Associates, P.A. has recovered money for investors who purchased investments that were not approved by the brokerage firm. Our investment fraud lawyers are ready to provide you with the legal representation that you deserve. For immediate assistance with your fraud or negligence claim, please call us today at 1-(305)-372-9700. From our office in the heart of Miami, we help investors seek full and fair compensation throughout South Florida.