Customer Files Suit Against Paulson Investment Company For Securities Fraud

Michael Patrick Nixon (CRD# 2169631), who has been a registered representative of both Newport Coast Securities, Inc. (Leesburg, VA) and Paulson Investment Company, LLC (Tampa, FL), disclosed on Financial Industry Regulatory Authority (“FINRA”) BrokerCheck that he is named in a July 9, 2018 FINRA Arbitration #18-02421 where several customers alleged that Nixon committed securities fraud. The customers are reportedly seeking $3,000,000.00 in damages because of Nixon’s fraudulent activities.

The customers’ claims included the violation of Florida Securities Act and the Virginia Securities Act; a breach of fiduciary duties; unsuitable securities recommendations; inadequate supervision of the transactions effected in the customers’ accounts; and the breach of contractual terms. Apparently, those claims of sales practice violations concerned the customers’ investments in corporate debt products during the period that Nixon was employed by both Paulson Investment Company, LLC and Newport Coast Securities, Inc. The arbitration is pending a resolution.

Another customer arbitration, National Association of Securities Dealers (“NASD”) Arbitration #98-03927 was disclosed on Nixon’s FINRA BrokerCheck file. A customer of American Frontier Financial Corporation (formerly known as RAF Financial Corp.) alleged that Nixon engaged in deceitful conduct; misrepresented information about investments; failed to supervise the customer’s stock transactions; breached fiduciary duties; and violated NASD rules.

Nixon has a history of working for brokerage firms that FINRA has expelled, including Dickinson & Co. (expelled April 7, 1998); Jesup & Lamont Securities Corp. (expelled November 4, 2010); Empire Financial Group, Inc. (expelled March 30, 2009); Meyers Associates, L.P. (expelled May 29, 2018); and Newport Coast Securities, Inc. (expelled June 25, 2018).

Nixon’s employment with Newport Coast Securities, Inc. ended on January 6, 2016. He has been with Paulson Investment Company LLC since December 4, 2015.

If you have suffered losses because of Michael Patrick Nixon, call the Law Office of Peter M. Spett at (561) 463-2799 for a free consultation concerning your legal rights and claims. Peter M. Spett has extensive experience recovering investor losses.