Between November 2021 and February 2022, NexPoint conducted a securities business while failing to maintain its required net capital, in violation of Section 15(c)(3) of the Securities Exchange Act of 1934, Exchange Act Rule 15c3-1, and FINRA Rules 4110(b)(1) and 2010. Between February 2021 and March 2022, NexPoint failed to maintain accurate books and records and filed with FINRA inaccurate Financial and Operational Combined Uniform Single (FOCUS) reports. The firm also failed to file required notifications regarding its net capital.

From March 2023 to September 2023, Fulghum electronically signed 22 documents on behalf of nine firm customers without permission and electronically signed 118 documents on behalf of 97 firm customers with permission. The documents included required books and records of the firm. Therefore, Fulghum violated FINRA Rules 2010 and 4511. For these violations, Fulghum is suspended from associating with any FINRA member in all capacities for six months and fined $5,000...