Claimant alleges that in 2009, the FA made unsuitable investment recommendations

Claimant alleged, inter alia, that FA solicited to him outside investment opportunities that were unauthorized by the firm and which the FA had a personal interest.

$1,622,844.00

$600,000.00

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-80006/IA Release 4648/IA Company Act Release 32475/February 10, 2017: The Securities and Exchange Commission (Commission) deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Sections 15(b) and 21C of the Securities Exchange Act of 1934 (Exchange Act), Sections 203(f) and 203(k) of the Investment Advisers Act of 1940 (Advisers Act), and Section 9(b) of the Investment Company Act of 1940 (Investment Company Act) against Sylvester King Jr. Beginning in 2009 and continuing into 2012, King participated in selling more than $5 million of unregistered, illiquid securities to certain of his professional athlete brokerage customers and investment advisory clients in an internet branding company known as Global Village Concerns, Inc. (GVC). King was issued GVC stock options and warrants provided by GVC. King's conduct with respect to the sale of GVC securities occurred outside and independent of his employment with registered broker-dealers. King misrepresented and omitted material information about the GVC investments to his investment advisory clients, some of which was based on information provided to King by GVC. King presented this information to his advisory clients without conducting any due diligence to verify any of the information he provided to his advisory clients. King also used his personal communication devices and emails to communicate with his brokerage customers and others about firm business without causing copies of those communications to be sent to or preserved on the broker-dealers' respective email servers or preserved in paper form. As a result of his conduct, King willfully violated Sections 206(1) and 206(2) of the Advisers Act and Section 15(a) of the Exchange Act, and willfully aided and abetted and caused his firms' respective violations of Section 17(a)(1) of the Exchange Act and Rule 17a-4(b)(4) thereunder.

Order

Bar (Permanent)

association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

with a right to reapply to the SEC after three years

8/23/2017

participating in any offering of a penny stock

Indefinite

with a right to reapply to the SEC after three years

8/23/2017

Cease and Desist

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

$80,000.00

Prohibition

Claimant alleged, inter alia, that FA solicited to him outside investment opportunities that were unauthorized by the firm

$205,000.00

$120,000.00

King was a subject of the customer's complaint against his member firms that asserted the following causes of action: breach of fiduciary duty; negligence and gross negligence; violations of FINRA Rules 2111, 3110 and 3120; and negligent supervision.

$8,853,842.00

Claimants allege, inter alia, that from June 2009 to October 2011 the FA recommended an investment that was not authorized by the firm.

$1,425,000.00

$228,000.00

FINRA

RESPONDENT KING FAILED TO PAY FINES AND/OR COSTS OF $35,000.00 IN FINRA CASE #2013036262101.

LETTER

Revocation

PURSUANT TO FINRA RULE 8320, RESPONDENT KING'S FINRA REGISTRATION IS REVOKED AS OF THE CLOSE OF BUSINESS ON JULY 28, 2015 FOR FAILURE TO PAY FINES AND/OR COSTS.

CLAIMANTS ALLEGE, INTER ALIA, THAT IN 2009 AND 2011 THE FA RECOMMENDED AN INVESTMENTS THAT WAS NOT AUTHORIZED BY THE FIRM.

$4,864,846.00

$1,100,000.00

MARYLAND DIVISION OF SECURITIES

ORDER TO SHOW CAUSE WAS ISSUED REQUIRING MR. KING TO SHOW WHY HIS REGISTRATION SHOULD NOT BE REVOKED BASED ON HIS DISCIPLINARY HISTORY IN CRD. THERE WAS NO RESPONSE AND AS PER THE ORDER TO SHOW CAUSE, MR. KING'S REGISTRATION WAS REVOKED.

Order

Revocation

FINAL ORDER OF REVOCATION

Negligence, gross negligence, breach of contract, fraud, fraudulent misrepresentation, negligent misrepresentation, fraud in the inducement, and breach of fiduciary duty.

$700,000.00

Negligence, gross negligence, breach of contract, fraud, fraudulent misrepresentation, negligent misrepresentation, fraud in the inducement, and breach of fiduciary duty

$200,000.00

FINRA

WITHOUT ADMITTING OR DENYING THE FINDINGS, KING CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT HE CIRCUMVENTED ONE OF HIS MEMBER FIRM'S POLICIES AND PROCEDURES BY ASSISTING ANOTHER REGISTERED REPRESENTATIVE IN CONCEALING APPROXIMATELY $399,500 IN LOANS TO CUSTOMERS OF THE FIRM. THE FINDINGS STATED THAT KING UNDERSTOOD THAT THE REGISTERED REPRESENTATIVE WAS CONCEALING THE LOANS IN ORDER TO AVOID THE FIRM'S REPORTING REQUIREMENTS. THE FINDINGS ALSO STATED THAT KING NEVER DISCLOSED TO THE FIRM THAT HE LOANED $25,000 TO A FRIEND WHO WAS UNRELATED TO HIM AND WAS A CUSTOMER OF THE FIRM. AT THE TIME, THE FIRM'S PROCEDURES PROHIBITED LOANS TO A FIRM CUSTOMER UNLESS, AMONG OTHER FACTORS, THE CUSTOMER WAS AN IMMEDIATE FAMILY MEMBER OF THE REPRESENTATIVE. THE FINDINGS ALSO INCLUDED THAT KING PARTICIPATED IN A PRIVATE SECURITIES TRANSACTION WITHOUT SEEKING OR OBTAINING WRITTEN APPROVAL FROM EITHER OF HIS FIRM'S TO PARTICIPATE IN THE TRANSACTIONS. SPECIFICALLY, AT THE BEHEST OF SEVERAL OF THEIR CLIENTS, KING AND THE OTHER REGISTERED REPRESENTATIVE REFERRED SEVERAL OF THEIR CLIENTS TO ANOTHER INDIVIDUAL FOR THE PURPOSE OF INVESTING IN A STARTUP COMPANY WHICH RESULTED IN THE CLIENTS PURCHASING APPROXIMATELY $3.08 MILLION OF PREFERRED STOCK. FINRA FOUND THAT KING FALSELY REPRESENTED TO ONE OF HIS FIRMS IN COMPLIANCE QUESTIONNAIRES THAT HE HAD NOT PARTICIPATED IN ANY PRIVATE SECURITIES TRANSACTIONS.

Acceptance, Waiver & Consent(AWC)

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

$35,000.00

Suspension

ANY AND ALL CAPACITIES

18 MONTHS

5/18/2015

11/17/2016

WELLS FARGO ADVISORS, LLC.

Voluntary Resignation

PER FINRA ACCEPTANCE, WAIVER AND CONSENT NO. 2013036262101, MR. KING AGREED TO A SUSPENSION FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY AND ALL CAPACITIES FOR A PERIOD OF 18 MONTHS. MR. KING SUBMITTED HIS RESIGNATION ON THE DAY THE AWC WAS ACCEPTED BY FINRA. THE AWC ALLEGES VIOLATIVE CONDUCT INCLUDING CIRCUMVENTION OF FIRM POLICIES AND PROCEDURES, LOAN TO CUSTOMER, PRIVATE SECURITIES TRANSACTION, AND FALSE COMPLIANCE QUESTIONNAIRES