Sylvester Knox is a previously registered broker and investment adviser based in New Jersey and he was the subject of a regulatory action which led to his suspension, instituted against him by the Financial Industry Regulatory Authority (FINRA) on the allegations of engaging in unauthorized transactions as well as failing to disclose material information, according to an investigation by lawyer for investors Alan Rosca.
Investor lawyer Alan Rosca of Rosca Scarlato LLC law firm is investigating conduct related to the suspension of Sylvester Knox on the allegations of engaging in unauthorized transactions as well as failing to disclose material information.
Sylvester Knox was previously registered with FSC Securities Corporation, a FINRA member firm between January 2017 and mid August 2018. Prior to his registration with this firm, starting August 2000 he was registered with Merrill Lynch Pierce, Fenner & Smith Inc. until he reportedly voluntarily resigned after the firm alleged that Knox engaged in unauthorized transactions, misrepresentations, and conduct inconsistent with Firm’s policies.
Investors should note that according to his IAPD Report, Knox is currently a registered investment adviser with The Knox Group Wealth Management, an investment adviser in Short Hills, New Jersey.
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Sylvester Knox Was Suspended by FINRA on Unauthorized Transactions Allegations
Publicly available information reviewed by the investor lawyer Alan Rosca showed that Sylvester Knox was defendant in a regulatory action initiated by FINRA which led to his suspension in all capacities on August 6, 2020, beginning from the start date of August 17, 2020 till May 16, 2021.
According to the information reported on his FINRA brokercheck page, the regulatory action was instituted on the allegations that Sylvester Knox effected transactions with a total principal value of approximately $1.7 million in the accounts of customers of his member firm without the prior consent or authorization of the customers.
It was alleged that Knox effected transactions on the accounts of firm customers without the prior written authorization of the customers or the firms to regard the accounts as discretionary. The discretionary transactions allegedly carried out on the accounts were approximately $2 million in value.
It was further alleged that Sylvester Knox intentionally failed to disclose a felony indictment against him. He was also alleged to have falsely attested on the firm’s compliance questionnaires that he had not been previously charged with a felony and that he did not exercise discretionary trading authority in another.
In addition to this, Knox allegedly made misrepresentations to the firm regarding the authorization from his customer when answering supervisory inquiries.
In settling this regulatory action and without admitting or denying the allegations, Sylvester Knox consented to an Acceptance, Waiver & Consent (AWC) letter which imposed the suspension sanctions mentioned above, in addition to the payment of $10,000 in civil and administrative penalties.
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Sylvester Knox Has Previously Been the Subject of other Regulatory Actions
In a regulatory action settled in March 2018, the Florida Office of Financial Regulation alleged that Sylvester Knox made a material misstatement on his application for registration. This action concluded with an Order denying his application.
Another regulatory action instituted by the Michigan financial industry regulator on January 10, 2018 was based on the intention of the regulatory authority to revoke or limit the registration of Sylvester Knox on the allegation that he was subject to a cease and desist order issued by a state securities regulator.
The order was allegedly issued because former broker Sylvester Knox had been engaged in dishonest or unethical business practices in the securities industry for the preceding 10 years. This regulatory action concluded with Knox consenting to the action and paying $1,500 in civil and administrative penalties.
Sylvester Knox Has Been the Subject of Multiple Customer Disputes
Most recently, a dispute filed in May 2018 on the allegations of unauthorized trading, settled for $5,0000. Prior to this dispute, in November 2016 a customer filed a claim alleging unsuitable investment recommendations, misrepresentation and omission with respect to an annuity investment. This dispute was concluded in December 2017 for $1,569,114, FINRA reports.
Knox‘s FINRA Brokercheck shows 19 additional customer disputes that ended in a settlement, 16 of which were reportedly filed in 2016.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Investor Lawyers Investigating Potential Options for Investors
The investor lawyers of the Rosca Scarlato LLC law firm advise and represent investors who are victims of broker or investment-related fraud and other misconducts and are currently investigating conduct related to Sylvester Knox’s suspension by FINRA on the allegation engaging in unauthorized transactions as well as failing to disclose material information.
It is important to note that the firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related Sylvester Knox’s suspension by FINRA on the allegation engaging in unauthorized transactions as well as failing to disclose material information, may contact attorney Alan Rosca for a free, no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.