Meyer Wilson

Recovering Losses Caused By Investment Misconduct

Broker Sylvester Knox Accused of Misrepresentation and Unauthorized Trading

Former Merrill Lynch broker, Sylvester Knox, voluntarily resigned from his position after misconduct of unauthorized trading, unsuitable recommendations, and misrepresentation was alleged by his clients.

Sylvester Knox is registered as a broker in 12 different states. Before working at Merrill Lynch starting in 2001, Sylverster Knox worked at First Union Brokerage in Charlotte, N.C.; Marketing One Securities in Portland, Ore.; Metlife Securities in Springfield, Mass.; Metropolitan Life Insurance Company in New York; Madison Chapin Assocs.; and Painewebber Incorporated in Weehawken, N.J.

In January of this year, Sylvester Knox resigned from Merrill Lynch after clients accused him of engaging in unauthorized trading. Knox has 25 client disputes listed on his Financial Industry Regulatory Authority (FINRA) report starting in 1999. In 2016, 17 of these disputes were settled for money damages ranging from $60,000 to $155,000. The settled disputes include claims of misrepresentation and participating in unauthorized activities and trades.

One of the four disputes still pending against Sylvester Knox alleges damages of $999,000. In July of 2016, clients of Sylvester Knox alleged that the broker had misrepresented information, engaged in unauthorized transactions, followed unsuitable investment strategy, and failed to follow client instructions from August 2002 until November 2010.

Another client alleged in May of this year that Sylvester Knox made unsuitable recommendations and misrepresented information from August 2012 until May 2017.

Knox also has a criminal dispute pending in New Jersey for allegations of felony aggravated assault. Sylvester Knox has pled not guilty on that charge.

Misrepresentation

Brokers are obligated to provide complete and factual information to their clients about their investments, including the nature and quality of the investment and the risk involved. Brokers also have a duty to disclose all relevant information about an investment to their clients, including the commissions the broker will receive or fees the client will incur under that investment.

Clients should receive information about investments proposed by their broker before deciding to invest. This information should include background information on the company and information about company financials.

If a broker misrepresents or fails to disclose material facts about the purchase or sale of a security or investment, the broker may be required to pay for client losses due to that misrepresentation or failure to disclose.

If you believe you have been the victim of stockbroker misconduct, the experienced attorneys at Meyer Wilson can help you recover any losses you have suffered. Contact us today for a free and confidential case evaluation.

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