Before the sentencing, Dixon's attorney argued that he shouldn't be held accountable for all the losses from the failed investments. Prior to his "entanglements" with the Kilpatrick administration, according to the attorney's court filing, Dixon was a "highly regarded and established businessman." Some of the losses, he said, were due to market forces, bad decisions by companies that obtained the investments - and a complaint filed by the U.S. Securities and Exchange Commission in 2010 against Onyx and Dixon. Resulting publicity caused customers and potential customers to back off of Onyx, Dixon's attorney bemoaned.
The SEC alleged in its case that Dixon and another Atlanta man, former Detroit Lion Michael Farr, worked together to misappropriate money from the Michigan pension funds. About $500,000 of that money was used to pay contractors working on Dixon's mansion.
Farr acknowledged in depositions for the SEC that he wrote the checks to the mansion contractors from funds he received from Onyx because he believed he owed Dixon a favor for investing in Second Chance Motors. Farr testified that when the SEC began investigating, he and Dixon created a backdated promissory note to make the transaction appear to be a loan.
Farr was not criminally charged.