April 2021- Short Hills, NJ
According to his FINRA record Sylvester Knox a financial advisor previously employed by FSC Securities Corporation discloses 4 regulatory events, 25 customer disputes and a termination from employment.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In August 2020 Knox, without admitting or denying the FINRA findings, consented to the entry of findings that he effected transactions with a total principal value of approximately $1.7 million in the accounts of customers in his member firm without the customers’ prior written authorization or consent. The findings stated that Knox exercised discretionary trading authority and effected transactions with a total principal value of approximately $2 million in the accounts of firm customers’ without having obtained prior written authorization from the customers or approval from the firm to treat the accounts as discretionary. Sanctions ordered were a nine month suspension and a $10,000 fine.
In May of 2018 Florida Office of Financial Regulation filed Case #87481-SR alleging that Knox made a material misstatement on his application for registration. He agreed to withdraw his application for registration to FSC Securities.
In January 2018, Michigan regulators brought an action against Knox.
From December of 1999 until May of 2018, Knox had 21 customer disputes that were settled. The customers alleged, among other things, products purchased not compatible for client’s risk tolerance, unsuitable investments, misrepresentation, omission of material facts, unauthorized transactions, unsuitable investment strategy, failure to follow instructions and unauthorized account activity. These cases collectively settled for almost $3.7 million dollars.
In January of 2017, Knox was allowed to resign from Merrill Lynch, Pierce, Fenner & Smith in response to allegations of “conduct including engaging in unauthorized transactions in certain client accounts, making misrepresentations to certain clients and conduct inconsistent with Firm policies related to client complaints.”
Sylvester Knox was employed by FSC Securities Corporation from January 2017 until August 2018. Before that he was with Merrill Lynch, Pierce, Fenner & Smith and First Union Brokerage Services, Inc.
If you had an account with Sylvester Knox that suffered losses you may be entitled to collect damages from his prior employer.
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