FINRA has banned broker Sylvester King Jr. (CRD# 4011622) for a period
of 18 months and fined him $35,000 over selling away allegations and other
accusations of misconduct.
accepted and consented to FINRA’s findings that between July 2009 and November 2012, he
participated in private securities transactions without disclosing this
to his managing firm. The alleged private securities transactions involved
eight firm customers and more than $3 million.
King was registered with
Morgan Stanley from June 1, 2009 until October 21, 2011 and then with
Wells Fargo Advisors from October 21, 2011 until the present.
According to FINRA, King and one of his partners solicited firm clients
to invest in a startup internet branding company called GVC. A friend
of King’s partner managed the startup, and King and his partner
allegedly referred their clients to him for the purpose of investing in
the company. Eight of King and his partner’s clients took their
advice and invested a collective $3.08 million in GVC stock. FINRA accused
King of not only referring some of his clients to GVC’s manager,
but also of facilitating their investment transactions.
Before a registered broker or financial advisor can recommend an investment
that is outside the scope of their employment with the firm, he or she
must first disclose the transaction and get approval from the managing
firm. FINRA accuses King of failure to disclose and obtain approval for
private securities transactions, misconduct that is commonly referred
to as “selling away.”
If you invested money with Sylvester King Jr. while he was at Morgan Stanley
or Wells Fargo and you lost money, we invite you to contact the securities
arbitration attorneys at Meyer Wilson today for a
free review of your case to learn your legal rights and options.