Financial Advisor Sylvester Knox, Merrill Lynch, Boston, MA

FINRA reportedly  suspended Sylvester Knox over alleged unauthorized trading and failure to disclose a felony indictment

According to Financial Advisor IQ today, citing a Letter of Acceptance, Waiver and Consent (AWC), the Financial Industry Regulatory Authority (FINRA) has suspended financial advisor Sylvester Knox over allegations of unauthorized trading and failure to disclose a felony indictment.

In January 2017, Knox reportedly resigned from Merrill Lynch voluntarily after allegations he had engaged “in unauthorized transactions in certain client accounts, making misrepresentations to certain clients and conduct inconsistent with [Merrill Lynch] policies related to client complaints and outside speaking engagements,” according to his FINRA BrokerCheck profile.

From June 2015 through October 2016, Knox allegedly executed 36 transactions in three customer accounts without their authorization, according to FINRA. The transactions had a total principal value of roughly $1.7 million, according to the AWC.

During the same period, Knox also purportedly exercised discretionary trading authority in the accounts of four of his Merrill Lynch customers without getting prior written authorization from the customers nor Merrill Lynch’s approval to handle the accounts on a discretionary basis, according to the AWC. 

Knox allegedly made 36 such transactions, with a total principal value of around $2 million. Knox also allegedly failed to disclose in a timely manner a March 2015 felony indictment on his Form U4, according to FINRA. 

Knox consented to a nine-month suspension and to pay a $10,000 fine without admitting or denying the findings, according to the AWC.

According to his BrokerCheck profile, Knox has 25 customer disputes on his record during his 29 year career in the securities industry. Allegations include unauthorized trading, unsuitable recommendations, misrepresentations, failure to follow instructions among others. Most have been settled, and three disputes were denied, according to BrokerCheck.

Knox was reportedly registered with Merrill Lynch from 2000- 2017. More recently he was affiliated with FSC Securities from 2017 to 2018, according to FINRA.

Consultation with a Securities Attorney

When brokers abuse client accounts or conduct transactions that violate securities laws, such as unauthorized trades or making unsuitable investments, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

If you are concerned about investments with Sylvester Knox, the securities attorneys of The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.