Finance 500, which Hicks founded in 1982, operates primarily as an institutional certificate of deposit broker, wholesaling FDIC-insured CDs to broker-dealers.
But in 2005, Finance 500 began making markets in low-priced securities, primarily through its Florida branch office, Finra claimed. Among other alleged transgressions, the branch illegally matched at least 60 orders for microcap stocks in order to create the appearance of legitimate trades.
One of the firm’s trading clients in Florida was Robert Mouallem, a broker at another firm who was convicted by a federal jury in 2012 on fraud charges over a scheme to sell shares in Dolphin Digital Media at inflated prices. Dolphin produces digital content and websites for children.
Also last month, Finra settled enforcement cases filed against three former Finance 500 brokers and supervisors.
Paul Savage, a former principal in the Florida office, agreed to a six-month suspension and a $10,000 fine over alleged supervisory lapses.
Savage, registered with six different B-Ds since 1987, was allowed to resign from Finance 500 last October and is no longer in the industry.
Another Florida rep, Geoffrey Schiffrin, was suspended for six months and fined $10,000. He is also no longer registered.
And William Watson, a former vice president of corporate finance at the firm, agreed to a $5,000 fine and a 10-day suspension for misrepresenting four securities offerings.
In settling the cases, neither Finance 500 nor the individuals involved admitted to any wrongdoing.