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Dispute Names Sherman Felix in Allegations of Unauthorized Trading

May 5, 2023 Unauthorized Trading

Sherman Felix (CRD #: 3003343), a broker formerly registered with SW Financial, is involved in a pending dispute, according to his BrokerCheck record, accessed on April 27, 2023. Read on to learn more about his alleged conduct as a broker.

Investor Dispute

On March 3, 2023, Sherman Felix was named in a dispute alleging the following forms of misconduct:

This pending dispute seeks $199,881 in damages.

FINRA Rule 3260

FINRA Rule 3260 requires brokers to receive written authorization from their clients before engaging in discretionary trading. Discretionary accounts must also be approved by the firm before this trading can occur.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must consult the investor’s profile, which contains information about their age, tax status, and overall financial situation.

Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

What is broker negligence?

Brokers may act in many negligent ways, ranging from misrepresenting material facts to executing an excessive number of trades. Investors who feel their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration.

Tax Liens

In 2016 and 2020, Sherman Felix incurred tax liens totaling $78,089.13.

Background Information

Sherman Felix has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 79TO – Investment Banking Registered Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

He previously worked for the following firms:

  • SW Financial (CRD#:145012)
  • Worden Capital Management (CRD#:148366)
  • Richard James & Associates (CRD#:169131)     
  • Arive Capital Markets (CRD#:8060)
  • COVA Capital Partners (CRD#:109761)
  • Newport Coast Securities (CRD#:16944)
  • Joseph Stone Capital (CRD#:159744)
  • National Securities Corporation (CRD#:7569)
  • Spartan Capital Securities (CRD#:146251)
  • Rockwell Global Capital (CRD#:142485)
  • Woodstock Financial Group (CRD#:38095)
  • Brookstone Securities (CRD#:13366)
  • Prestige Financial Center (CRD#:30407)
  • Reid & Rudiger (CRD#:47263)
  • Woodstock Financial Group (CRD#:38095)
  • J.P. Turner & Company (CRD#:43177)
  • Commerce One Financial (CRD#:100340)
  • LH Ross & Company (CRD#:37920)
  • Ehrenkrantz King Nussbaum (CRD#:113525)
  • LH Ross & Company (CRD#:37920)
  • Harrison Securities (CRD#:14103)
  • Ehrenkrantz King Nussbaum (CRD#:31140)
  • Andrew, Alexander, Wise & Company (CRD#:37710)
  • Trident Partners (CRD#:41258)
  • Continental Broker-Dealer Corporation (CRD#:14048)
  • Millennium Securities Corporation (CRD#:31695)
  • Tasin & Company (CRD#:30709)

Kurta Law Can Help

If you worked with Sherman Felix and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.