Wilfredo Felix Suspended and Barred by FINRA
Wilfredo Felix (CRD #: 2693672), a broker formerly registered with Primex, has been suspended by FINRA, according to his BrokerCheck record, accessed on July 9, 2022. Read on if you have questions about Wilfredo Felix’s conduct as a broker.
2022 Suspension by FINRA
On May 23, 2022, FINRA suspended Wilfredo Felix for allegedly failing to comply with an arbitration award or to satisfactorily respond to a FINRA request for information concerning the status of his compliance.
Wilfredo Felix has been indefinitely suspended from associating with FINRA members in all capacities until the required payment is made or discharged.
2020 FINRA Investigation
On December 3, 2020, FINRA filed a complaint against Wilfredo Felix alleging his failure to respond to requests for information and documents.
In March 2020, FINRA sent Wilfredo’s firm, Primex Prime Electronic Execution, Inc. (Primex), several requests for documents and information, including the firm’s general ledgers starting from March 1, 2019, and Primex’s 2019 annual audit, as part of a routine examination of the firm. The information was necessary to determine if Wilfredo Felix had misclassified his personal expenses as expenses of the firm.
The complaint concluded that Wilfredo Felix allegedly violated FINRA Rules 8210 and 2010.
FINRA Rules 8210 and 2010
FINRA Rule 8210 requires that members provide information, documents, and testimony upon request by FINRA.
Failure to provide information also violates FINRA Rule 2010, which holds brokers to high standards of professional honor and ethical behavior.
2019 Bar by FINRA
On July 1, 2019, Wilfredo Felix was named in a FINRA complaint alleging that he falsified books and records at Primex by misclassifying personal expenses as business expenses on the firm’s general ledger and in other books and records.
From January 2013 to December 2015, Wilfredo Felix allegedly made electronic withdrawals from Primex’s bank account and used the firm’s debit card (issued in his name) for personal expenses on more than 1,000 occasions. He allegedly withdrew tens of thousands of dollars in cash and spent hundreds of thousands of dollars on personal expenses.
The complaint also alleges that Wilfredo Felix failed or refused to respond to requests for information in a timely manner and provided false or misleading responses during testimony and in writing.
The complaint concludes that these alleged actions by Wilfredo Felix and Primex violated the following regulations:
- Section 17(a) of the Securities Exchange Act of 1934 and Rules 17a-3 and 17a-5 thereunder
- Section 3(a)(39) of the Exchange Act
- Article III, Section 4 of FINRA’s By-Laws
- FINRA Rules 8210, 4511, 2010
According to the regulator statement made on this dispute on BrokerCheck, the charges relating to false and misleading information were later dropped.
Section 17(a) of the Securities Exchange Act of 1934
Section 17(a) of the Securities Exchange Act of 1934 defines the recordkeeping requirements for brokerage firms and other organizations.
Rule 17a-3 requires firms to maintain properly itemized ledger accounts of all purchases, sales, receipts, and deliveries of securities, as well as other information concerning transactions.
Rule 17a-5 describes the kinds of financial reports brokers and dealers must make to the SEC, including audited statements.
Section 3(a)(39) of the Exchange Act defines the kinds of violations which can lead to a statutory disqualification from self-regulatory organizations like FINRA.
Article III, Section 4 of FINRA’s By-Laws
Article III, Section 4 of FINRA’s By-Laws disqualifies a FINRA member if they are subject to a statutory disqualification as defined in the Exchange Act.
FINRA Rule 4511
FINRA Rule 4511 requires firms to maintain books and records, with the implicit obligation to keep these records accurate and up-to-date.
Sanctions
On July 1, 2020, Wilfredo Felix was indefinitely barred from associating with FINRA members in all capacities and ordered to pay half of the total costs, an amount of $12,585.39.
This complaint was appealed to the NAC on July 27, 2020, and affirmed on May 26, 2021. Wilfredo Felix appealed the decision to the SEC on June 28, 2021. While this appeal remains pending, his bar is not in effect.
You can read a copy of the bar
Background Information
Wilfredo Felix has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 62 – Corporate Securities Limited Representative Examination
- Series 28 – Introducing Broker/Dealer Financial Operations Principal Examination
- Series 24 – General Securities Principal Examination
He has also worked for the following firms:
- Primex (CRD#:29394)
- Fletcher and Faraday (CRD#:29769)
- The Minneapolis Company (CRD#:38859)
- La Jolla Capital (CRD#:24341)
- First Colonial Securities Group (CRD#:25121)
- Investors Associates (CRD#:958)
Kurta Law Can Help
If you worked with Wilfredo Felix and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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.
Loading...
Reload document 
Open in new tab