The Financial Industry Regulatory Authority (FINRA) has filed a complaint against Greenville, South Carolina-based brokerage firm Sandlapper Securities, LLC (CRD#: 137906), as well as two of its financial representatives, Trevor Lee Gordon (CRD#: 2195122) and Jack Charles Bixler (CRD#: 22331). Mr. Gordon and Mr. Bixler have both been representatives of the firm since 2006.
In its legal complaint (No. 2014041860801), FINRA alleges that these two men, through their brokerage firm, defrauded investors by selling certain securities at undisclosed markups. During the relevant time period in this case, Trevor Lee Gordon was the Chief Executive Officer (CEO) of Sandlapper Securities and Jack Charles Bixler was President of the Sandlapper Capital Markets Division. Here, our investment fraud lawyers review the specific allegations raised by FINRA.
FINRA Complaint: Sandlapper Securities, Trevor Lee Gordon, Jack Charles Bixler
From 2011 to 2015, Sandlapper was selling securities in a company call Saltwater Disposal. This company made its revenue by getting rid of certain undesired runoffs created in oil and gas extraction. Sandlapper, Mr. Gordon, and Mr. Bixler started an investment fund to sell interests in this company.
According to the investment offering that was presented to actual and prospective investors, there was no conflict of interest between Sandlapper Securities and the fund being offered by Mr. Gordon and Mr. Bixler. Investors were informed that Sandlapper Securities would obtain independent appraisals in any transactions with affiliates such as the Saltwater Disposal fund.
However, FINRA alleges that the reality was different. Through material misrepresentations and the omissions of relevant facts, Mr. Gordon and Mr. Bixler sold securities to investors with massive, undisclosed markups. FINRA states that these markups were between 160 percent and 270 percent. According to investigators, the fraudulent markups totaled more than $8 million. FINRA is seeking relief, including:
- Findings of fact and law against Sandlapper Securities, Trevor Lee Gordon, and Jack Charles Bixler;
- Finding that Mr. Gordon and Mr. Bixler willfully violated federal securities law; and
- Financial penalties, possibly including fines, disgorgement of ill-gotten gains, and payment of complete financial restitution to affected investors.
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