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
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.
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.