Sylvester Knox (CRD #: 1625705), an investment advisor registered with The Knox Group Wealth Management, and a broker formerly registered with FSC Securities Corporation, was suspended by the Financial Industry Regulatory Authority (FINRA), according to his Investment Adviser Public Disclosure, accessed August 19, 2020. This was the latest on a substantial list of regulatory actions and customer disputes involving Sylvester Knox..
On August 6, 2020, Sylvester Knox entered into an Acceptance, Waiver and Consent agreement with FINRA in which he consented to the findings that he effected transactions with a total principal value of approximately $1.7 million in the accounts of customers of his member firm without the customers’ authorization or consent.
- The findings further state that Sylvester Knox exercised discretionary trading authority and effected transactions with a total principal value of approximately $2 million in the accounts of customers without having obtained prior written authorization from the customers or approval from the firm to treat the accounts as discretionary.
- The findings also state that Knox willfully failed to disclose a felony indictment in a timely manner via the filing of an amended Form U4. In addition, Knox falsely attested on firm compliance questionnaires that he did not use discretionary trading authority.
- Knox also made misstatements to the firm regarding whether customers authorized transactions when responding to supervisory inquiries.
Knox consented to a fine of $10,000 and 9-month suspension, beginning August 17, 2020 and ending May 16, 2021. A copy of Sylvester Knox’s AWC can be found here.
This disclosure in Sylvester Knox’s IAPD is only the most recent regulatory action involving his sales practice conduct.
On March 30, 2018, the Florida Office of Financial Regulation issued a notice of intent to deny Sylvester Knox’s application as an associated person of FSC Securities Corporation. Florida alleges Sylvester Knox made a material misstatement on his application for registration.
On January 10, 2018, the State of Michigan alleged that Sylvester Knox had filed false or misleading information with the Bureau by submitting correspondence on or around April 14, 2017 and May 18, 2017 in which he denied knowledge of any internal review of investigation by his former employer, Merrill Lynch. Evidence gathered during the investigation demonstrated that Sylvester Knox was aware of and actually cooperated with the internal investigation by Merrill Lynch. Sylvester Knox consented to a fine of $1,500.
In 2016 alone, Sylvester Knox faced 12 customer complaints that alleged he engaged in unauthorized account activity and made misrepresentations. These complaints were collectively resolved for over $1,000,000.
On January 5, 2017, Knox resigned from Merrill Lynch, Pierce, Fenner & Smith, Incorporated following allegations that he engaged in unauthorized transactions and made misrepresentations.
Sylvester has passed the Series 65 Uniform Investment Adviser Law Examination, the Series 63 Uniform Securities Agent State Law Examination, the Securities Industry Essentials Examination, the General Securities Representative Examination, and the Series 24 General Securities Principal Examination.
Sylvester has worked in the securities industry for three decades. In his 30 years of experience, he has worked for the following firms:
- FSC Securities Corporation (CRD#: 7461)
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#: 7691)
- First Union Brokerage Services, Incorporated (CRD#: 8112)
- Marketing One Securities, Incorporated (CRD#: 16611)
- Metlife Securities, Incorporated (CRD #: 14251)
- Metropolitan Life Insurance Company (CRD #: 4095)
- Madison Chapin Associates, Incorporated (CRD #: 14483)
- Painewebber Incorporated (CRD #: 8174)
If Sylvester Knox was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta. Call (877) 238-4175 or email [email protected] for your free case consultation with a securities attorney.