Winston Felix – Edward Jones Broker – Allegations of Unsuitable Investments
The White Law Group is investigating potential securities claims involving Winston Felix (CRD#: 7183135), a former financial advisor with Edward Jones, based on allegations made by the Washington State Department of Financial Institutions Securities Division.
Allegations Against Winston Felix
According to the Division, in late 2022, Winston Felix allegedly made an unsuitable recommendation to a Washington resident involving a series of trades for tax-loss harvesting purposes. The trades reportedly generated over $120,000 in capital losses within the client’s non-qualified brokerage account.
While tax-loss harvesting is a common investment strategy used to reduce capital gains taxes, the strategy must be tailored to the investor’s financial and tax situation. The Division alleges that Felix failed to obtain necessary information from the client or their accountant regarding:
- How much in capital gains the client needed to offset;
- Whether the client had existing capital losses that could be carried forward.
Instead, the trades resulted in significant losses that the client could not immediately use to offset income. According to Edward Jones, it could take “almost 40 years” for the client to fully benefit from the over $120,000 in capital losses, given the $3,000 per year limit for offsetting ordinary income.
Felix reportedly earned $4,257 in gross commissions from the transactions.
Fiduciary Duty and Suitability Concerns
Financial professionals have a duty to recommend investments that are suitable based on each client’s individual circumstances, including their tax situation, risk tolerance, and investment objectives. When brokers fail to perform adequate due diligence or act primarily in their own interests (e.g., to generate commissions), investors may have grounds to pursue claims for financial recovery.
Recovery Options for Investors
If you have suffered investment losses due to unsuitable investment recommendations by Winston Felix or another Edward Jones advisor, you may be able to recover damages through FINRA arbitration, a forum for resolving disputes between investors and their financial professionals.
The White Law Group has handled over 800 FINRA arbitration claims on behalf of retail investors involving unsuitable recommendations, misrepresentation, and broker misconduct.
About Winston Felix
According to FINRA BrokerCheck, Winston Felix was registered with Edward Jones from 2020 to 2025. He is no longer listed as a registered broker with FINRA. He reportedly has one customer complaint on his record for allegations of unauthorized trades.
Free Consultation with a Securities Attorney
If you are concerned about your investments with Winston Felix or believe you were a victim of broker misconduct, please call The White Law Group at 1-888-637-5510 for a free consultation.
With offices in Chicago and Seattle, the securities attorneys at The White Law Group represent victims of investment fraud in all fifty states. For more information, visit www.whitesecuritieslaw.com.
FAQs
What is tax-loss harvesting?
Tax-loss harvesting is an investment strategy where an investor sells underperforming securities at a loss to offset capital gains or reduce taxable income. The IRS limits the amount of capital losses that can be used to offset ordinary income to $3,000 per year.
Can I sue my financial advisor for unsuitable investment advice?
Yes, if a financial advisor recommends investments that are not suitable for your individual circumstances, you may be able to file a FINRA arbitration claim to recover your losses.
What is FINRA arbitration?
FINRA arbitration is a dispute resolution process used to resolve claims between investors and their brokers. It is often faster and less expensive than traditional litigation.
