FINRA

Without admitting or denying the findings, Knox consented to the sanctions and to the entry of 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 stated that Knox exercised discretionary trading authority and effected transactions with a total principal value of approximately $2 million in the accounts of firm customers without having obtained prior written authorization from the customers or approval from the firm to treat the accounts as discretionary. The findings also stated that Knox willfully failed to timely disclose material information via the filing of an amended Form U4. In addition, Knox falsely attested on firm compliance questionnaires that he did not have this disclosable matter and on one compliance questionnaire that he did not use discretionary trading authority. Knox also made misstatements to the firm regarding whether the customers authorized transactions when responding to supervisory inquiries.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$10,000.00

Suspension

All capacities

Nine months

8/17/2020

5/16/2021

Respondent understands that this settlement includes a finding that he willfully omitted to state a material fact on a Form U4, and that under Section 3(a)(39)(F) of the Securities Exchange Act of 1934 and Article III, Section 4 of FINRA's By-Laws, this omission makes him subject to a statutory disqualification with respect to association with a member.

The Customer alleges unauthorized trading on January 22, 2013.

$5,000.00

I did not receive a copy of this Complaint. The client has never expressed dissatisfaction with my services.

Florida Office of Financial Regulation

Making a material misstatement on the application for registration.

Order

Denial

On 3/30/2018, the Office of Financial Regulation issued a Notice of Intent to Deny the application of Sylvester Knox as an associated person of FSC Securities Corporation. Mr. Knox may request a hearing to contest this action filed by the Office. The request for hearing must be filed within twenty-one (21) days of receipt of the Notice of Intent to Deny Application for Registration.

Michigan

The Administrator intends TO REVOKE, SUSPEND, CONDITION, OR LIMIT THE SECURITIES AGENT REGISTRATION OF SYLVESTER KNOX under section 412(2) of the Securities Act, MCL 451.2412(2), because he is subject to a cease and desist order by a state securities regulator, and because he has engaged in dishonest or unethical business practices in the securities industry within the previous 10 years, which support the revocation of his securities agent registration under the above-cited provisions of the Michigan Uniform Securities Act (2002), 2008 PA 551, MCL 451.2101 et seq.

Consent

Civil and Administrative Penalty(ies)/Fine(s)

$1,500.00

Within fifteen calendar days after the date this Administrative Consent Order is entered, Respondent will withdraw his registration as a securities agent in Michigan.

Michigan

Respondent Sylvester Knox filed false or misleading information with the Bureau, in violation of section 505 of the Securities Act, MCL 451.2505, by submitting correspondence to the Bureau on or around April 14, 2017 and May 18, 2017 in which he denied knowledge of any internal review or investigation by his former employer, Merrill, Lynch, Pierce, Fenner, and Smith, Inc. Evidence gathered during the investigation shows that Respondent was aware of and actually cooperated with the internal investigation. The statements made in the April 14, 2017 and May 18, 2017 correspondence to the Bureau were false or misleading, contrary to section 505 of the Securities Act, MCL 451.2505.

Consent

Civil and Administrative Penalty(ies)/Fine(s)

$1,500.00

Within fifteen calendar days after the date this Administrative Consent Order is entered, Respondent will withdraw his registration as a securities agent in Michigan.

The Customer alleges misrepresentation and omission of material facts from August 2012 to May 2017.

$300,000.00

The (Puerto Rico) muni Bonds in question were investment grade at the time purchased and were recommended by Merrill lynch to offer to our clients.

The Customers allege unsuitable investment recommendations and misrepresentation and omission of material fact from January 2010 to January 2017.

[Customer's] were my clients at Merrill Lynch for over 7 years. The clients were contacted to confirm all transactions. The Merrill Lynch trades were completed according to client instruction. The clients expressed they were very happy with our services over the years. I have hired an attorney and am in the process of disputing these allegations to have them removed from my U5. I have never received a written or verbal complaint from this client. Customer Withdrawn complaint-Managed Wrap Account/In House Money Manager

Merrill Lynch, Pierce, Fenner & Smith Incorporated

Voluntary Resignation

Conduct including engaging in unauthorized transactions in certain client accounts, making misrepresentations to certain clients and conduct inconsistent with Firm policies related to client complaints and outside speaking engagements.

The Customer alleges unauthorized account activity and misrepresentation from August 2016 - September 2016.

$69,344.40

The Customer alleges unauthorized account activity and misrepresentation from August 2016 - September 2016.

$105,947.26

THE CUSTOMER ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS, MISREPRESENTATION AND OMISSION OF MATERIAL FACTS FROM 2008-2016.

$1,569,114.00

I do not know this complain. I was not informed of any information of this allegation . As far as I know the client was very happy with my services.

The Customer alleges unauthorized account activity and misrepresentation from August 2016 - September 2016.

$85,722.34

The Customer alleges unauthorized account activity and misrepresentation from August 2016 - September 2016.

$146,685.31

The Customer alleges unauthorized account activity and misrepresentation from August 2016 - September 2016.

$69,753.55

The Customer alleges unauthorized account activity and misrepresentation from August 2016 - September 2016.

$86,326.34

The Customer alleges unauthorized account activity and misrepresentation from August 2016 - September 2016.

$118,244.76

The Customer alleges unauthorized account activity and misrepresentation from August 2016 - September 2016.

$67,607.80

The Customer alleges unauthorized account activity and misrepresentation from August 2016 - September 2016.

$95,899.91

The Customer alleges misrepresentation from May 2013 to August 2016.

$76,961.10

The Customers allege misrepresentation, unauthorized transactions, unsuitable investment strategy and failure to follow instructions from August 2002 to November 2010.

$999,999.00

$140,000.00

The Customers, through their attorney, allege misrepresentation and unsuitable investment recommendations from August 2013 to November 2015.

$386,864.96

$155,000.00

THE CUSTOMER ALLEGES FAILURE TO FOLLOW INSTRUCTIONS, UNSUITABLE INVESTMENT RECOMMENDATIONS AND MISREPRESENTATION AND OMISSION OF MATERIAL FACTS FROM JANUARY 2008 TO NOVEMBER 2010. ALLEGATION ACTIVITY PERIOD FROM 1/02/2008 TO 11/30/2010.

$300,000.00

$53,000.00

ALL ALLEGATIONS OF WRONGDOING ARE DENIED. THIS CASE WAS SETTLED TO AVOID THE EXPENSE AND UNCERTAINTY OF ARBITRATION. THE INVESTMENT STRATEGY WAS FULLY CONSISTENT WITH THE CLAIMANT'S STATED OBJECTIVES.

CLIENT QUESTIONS THE SUITABILITY OF HER ANNUITY IN AN IRA ACCOUNT.

$10,000.00

$6,343.00

THIS CUSTOMER VERBALLY COMPLAINED TO THE FIRM REGARDING THE SAME MATTER IN 2004. IN ORDER TO AVOID THE COST AND UNCERTAINTY OF FURTHER DISPUTE REGARDING THIS MATTER, THIS MATTER WAS SETTLED FOR $6343.33 ON 01/21/2005.

CUSTOMERS ALLEGED THAT THE PRODUCT THEY PURCHASED WAS NOT COMPATIBLE WITH THEIR RISK TOLERANCE. CUSTMERS THOUGHT THAT PRODUCT MATURED IN A YEAR AND THAT THE PRINCIPAL WAS PROTECTED.

$13,912.10

$13,912.90

THE CLIENTS POSITION WAS SOLD AND THE FULL PURCHASE AMOUNT WAS RETURNED TO THE CUSTOMER.