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.
King 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.
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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.”
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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.
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