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Investor Alert: Sylvester Knox and Merrill Lynch

Investor Alert: Sylvester Knox and Merrill Lynch

Investor Alert: Sylvester Knox and Merrill Lynch

The Financial Industry Regulatory Authority (“FINRA”) fined Sylvester Knox $10,000 and suspended him from FINRA for nine months.  According to Knox’s Letter of Acceptance, Waiver, and Consent, from “June 2015 through October 2016, Knox violated FINRA Rule 2010 when he effected 36 transactions with a total principal value of approximately $1.7 million in three of his Firm customers’ accounts without the customers’ authorization or consent for the trades,” among other offenses.  (https://www.finra.org/sites/default/files/fda_documents/2016051621901%20%20Sylvester%20Knox%20CRD%201625705%20AWC%20va.pdf)

Per Knox’s BrokerCheck Report, he has been the subject of numerous customer disputes and several regulatory actions.  For example, in January 2018, Michigan’s Corporations, Securities, and Commercial Licensing Bureau (the “Bureau”) found that Knox “filed false or misleading information with the Bureau, in violation of section 505 of the Securities Act, MCL 451.2505.”  Specifically, the Bureau’s Notice and Order to Cease and Desist stated that on or around April 14, 2017 and May 18, 2017, Knox “denied knowledge of any internal review or investigation by his former employer, Merrill, Lynch, Pierce, Fenner, and Smith, Inc.”, despite the fact that Knox “was aware of and actually cooperated with the internal investigation.”  As of result of Knox’s dishonesty, he received a $10,000 fine.  (https://www.michigan.gov/documents/lara/Knox_Slyvester_CRD_1625705_CN_332047_CD_Order_NOI_to_Revoke_AG_Registration_WEB_1-11-18_611050_7.pdf).  The Bureau also revoked Knox’s securities agent registration.

In December 2018, the Florida Office of Financial Regulation found that Knox “made a material omission on his Uniform Application for Securities Industry Registration or Transfer (Form U4) when he failed to disclose a criminal indictment and denying Knox’s application for registration.”

After departing from FCF Securities Corporation in 2018, Knox looks to have opened his own investment services firm, The Knox Group Global Wealth Management, per his website (https://www.sylvesterknox.com/team/sylvester-knox).

FINRA Rule 2010

FINRA Rule 2010 requires associated persons to observe high standards of commercial honor and just and equitable principles of trade. Unauthorized trading, which occurs when a registered representative executes trades in a customer’s account without first obtaining the customer’s authorization or consent, violates FINRA Rule 2010.

Need Assistance?

If you have suffered investment losses as a result of the malpractice or misconduct of Sylvester Knox or Merrill Lynch, our experienced team of securities attorneys may be able to assist you in recovering some or all of your losses. Call us toll-free at 888-607-4819 for a free consultation or email us through our “Contact” page to schedule a free consultation.