Broker Sylvester King Jr. Sanctioned and Suspended by FINRA

Allegations of selling away and other policy violations have Wells Fargo broker in hot water

In a recent case drawing from allegations beginning in July 2009 and up to the year 2012, Sylvester King Jr. was accused of violating policies with his employer, Ft. Lauderdale Wells Fargo, in order to assist another broker in covering up more than $400,000 in loans made to three customers at the firms. In addition, King was named in connection with loaning another customer $25,000 without commission and participating in undisclosed private securities transactions known as selling away. This allowed eight customers to invest more than $3 million.

King became active in the securities industry in 1999. Between 2006 and 2009, he worked with Citi Group Global Markets Inc., between 2009 and 2010 he worked with Morgan Stanley and from 2011 until 2015 he was connected to Wells Fargo. Wells Fargo filed a termination form U-5 at the end of April in 2015, the same day that FINRA entered into an agreement with the broker accepting a fine and sanction stating the reasons that he was being discharged from the firm. His FINRA suspension at that time was 18 months. After this date, FINRA filed an additional regulatory action stating that King did not pay the $35,000 required within the settlement.

The claims in this particular case argue that King and his partner were involved in concierge service provision to professional athletes who played in the NBA and the NFL. The violations named in this complaint were those carried out by King on behalf of these athletes. FINRA discovered that between 2011 and 2012, during the time which King was registered with Wells Fargo, King and his partners loaned nearly $400,000 to three professional athletes. In order to hide these loans from his employer, the partner wired the loan funds to another entity owned by family members of the two brokers.

It is also alleged in the reasoning for the suspension that King participated in private securities transactions with a startup internet branding company, giving several of King and his partner’s clients access to more than $3 million of preferred stock in this new company. These transactions were facilitated by sending PowerPoint presentations and other data about the new company to potential investors but these investments were not approved by King’s brokerage firms.

If you or someone you know has been the victim of securities fraud, contact the attorneys at the Silver Law Group to learn more about your options.