Prosecutors changed Frank Perkins Hixon Jr. with making trades using an account in his ex-girlfriend's name that used insider information to make about $1 million in illegal profits, the New York Times reported Friday.
The Securities and Exchange Commission has charged Hixon with seven counts of fraud and one count of lying to the government, the Times said.
Hixon was fired from Evercore last month and arrested Friday morning with charges unsealed in U.S. District Court in Manhattan.
Prosecutors contend that Hixon used the account to make trades of three companies, including Evercore, where he was the senior director of mining and metals investment. He also shared insider information with his father in Georgia, authorities claim.
"We have never had a situation like this before in Evercore's nearly 20-year history -- this conduct is completely inconsistent with our culture and professional standards," Evercore said in a statement.
"As we continue to cooperate fully with the authorities, we want to make clear that we have zero tolerance for actions that violate our most cherished principles and the trust our clients and shareholders place in us," the statement said.
2014: The Year in Music [PHOTOS]