Peter Girgis Named in SEC Civil Suit Alleging Fraudulent Scheme

Peter Girgis (CRD #: 4520444), a broker formerly registered with SW Financial, allegedly participated in a fraudulent scheme, according to his BrokerCheck record, accessed on April 15, 2025. Keep reading if you want to know more about his alleged conduct as a broker.

SEC Civil Suit

On January 31, 2025, the Securities and Exchange Commission filed a civil complaint against Peter Girgis, John Cangialosi, Gene Sarabella, Enrico Carini, Caner Otar, Chester Scotland, Franz Lambert II, Max Infinity Management LLC (d/b/a Max Infinity Fund), Max Infinity Venture Partners, Inc., Elder Fund Management LLC, JJRP United Corp, and Grand Level Consulting Inc.

The SEC alleged that the defendants engaged in a fraudulent scheme that used false and misleading statements and other forms of deception in order to sell interests in investment funds offered by Max Infinity Fund and Elder Fund (the Funds) claiming to represent shares of stock in pre-IPO companies. This scheme allegedly raised over $70 million from more than 550 investors.

Peter Girgis was allegedly suspended by FINRA for part of the relevant period, and his role in orchestrating the scheme was allegedly hidden by investors by holding up Gene Sarabella as the owner and organizer of the Funds.

In conjunction with Gene Sarabella and John Cangialosi, Peter Girgis allegedly used several entities to conduct their scheme, including Max Infinity Management, Max Infinity Venture Partners, and Elder Fund Management (Max and Elder Entities), and JJRP United Corp and Grand Level Consulting, which operated boiler rooms.

The three allegedly also hired and trained unregistered sales agents to pitch investments in the fund to prospective investors, many of whom were seniors.

Alleged False and Misleading Statements

The Funds were allegedly not registered with the SEC and, in contradiction to sales agents’ claims, had no record of success. Investors were allegedly also told their proceeds would be held in escrow until the IPO, but the SEC alleged that this was not true and that investors’ funds were not protected from market volatility.

Further, the defendants allegedly sold interests in the Funds with markups ranging from 45-100% above the price that the Max and Elder Entities paid for them, despite telling investors that they would pay no upfront fees or commissions. This allegedly significantly increased risk for investors, despite defendants’ alleged claims that these investments were low-risk and would yield profits in the short-term.

According to the SEC, by the time of complaint filing, only one of the relevant pre-IPO companies has gone public, and this allegedly resulted in significant losses for investors.

This complaint is currently pending.

2024 Bar by FINRA

On July 2, 2024, FINRA barred Peter Girgis for allegedly failing to respond to requests for information. His bar took effect on October 7, 2024.

Investor Disputes

On December 5, 2022, an investor named Peter Girgis in allegations of unsuitable investment recommendations, churning, negligent conduct, and failure to supervise. The client seeks $510,152.82 in this pending dispute.

On March 21, 2022, an investor named Peter Girgis in allegations of fraud, breach of contract, excessive trading and excessive commissions, unauthorized trading, negligence, and violation of the suitability rule. This dispute seeks $1,284,892.10 in damages.

On May 6, 2016, an investor alleged that Peter Girgis engaged in misappropriation, executed unauthorized transactions, and breached his contract. The client further alleged that he made misrepresentations, engaged in negligence, and violated the suitability rule. They sought $687,000 in damages and received a settlement of $65,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. These profiles contain information such as investors’ age, risk tolerance, and investment goals.

Excessive trading, also called churning, violates this rule by generating high fees and commissions that eat into investors’ returns.

Investors who rely on brokers for investment recommendations can pursue FINRA arbitration and potentially recover their losses.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision over their employees in order to detect and prevent violations of securities regulations. Among other things, firms must appoint supervisors and ensure that they have adequate training or experience.

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to engaging in discretionary trading only in pre-authorized accounts. Firms and clients must provide approval for discretionary accounts before this trading can occur.

FINRA Rule 2150

FINRA Rule 2150 prohibits the improper use of investors’ funds.

FINRA Rule 2020

FINRA Rule 2020 bans the use of manipulative, deceptive, or otherwise fraudulent tactics to influence the purchase and sale of securities. Misrepresenting information related to investments violates this rule.

FINRA Rule 2010

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

Disputes Settled by Arbitration

In a dispute filed on October 10, 2022, Peter Girgis was named in allegations of the following misconduct:

• Breach of contract
• Unjust enrichment
• Failure to supervise
• Violation of the suitability rule

The dispute alleged that SW Financial brokers engaged in “egregiously unsuitable trading,” racking up more than $4.5 million in commissions and fees while clients experienced losses exceeding $6 million dollars. You can read the arbitration award here.

On May 31, 2022, Peter Girgis was named in a dispute against SW Financial which alleged the following:

• Breach of contract
• Common law fraud
• Violations of federal securities laws
• Violations of the South Carolina Securities Act
• Violation of the New York Consumer Protection Act
• Misrepresentations and omissions
• Negligence and gross negligence

The investor further alleged that unauthorized, excessive, and unsuitable stock trades were executed on margin in his accounts.

The client was awarded $1,413,166.10 in damages, plus interest on this amount at the rate of 8.75% per annum; $975,171.88 in damages that represent the commissions and fees the investor paid; and $500,000 in punitive damages, as well as additional costs and fees. You can read the arbitration award here.

Bar by State of Illinois

On January 12, 2022, the Illinois Secretary of State permanently barred Peter Girgis following his suspension by FINRA. The bar took effect on June 6, 2022.

FINRA Suspension

On December 1, 2021, Peter Girgis consented to the findings that he allegedly engaged in excessive trading.

FINRA determines excessive trading by looking at the cost-to-equity ratio. The cost-to-equity ratio is the percentage by which the portfolio would have to grow in order to cover trading costs and sales commissions. A cost-to-equity ratio over 20% indicates excessive trading.

According to a Letter of Acceptance, Waiver & Consent (AWC), FINRA alleged the following:

• One customer’s portfolio had a cost-to-equity ratio of 84.63% and allegedly lost $137,215.
• A customer’s portfolio had a cost-to-equity ratio of 46.84% and allegedly suffered losses of $34,929.

Two other customers allegedly had portfolios with cost-to-equity ratios of over 20%.

Altogether, the investors allegedly realized losses of $224,573 and Peter Girgis allegedly earned $181,877.

The AWC alleged that, through this misconduct, Peter Girgis violated FINRA Rules 2111 and 2010.

Sanctions

Peter Girgis consented to the following sanctions:

• Nine-month suspension from associating with FINRA members
• $7,500 fine
• $169,677 in restitution

His suspension ran from January 3 to October 2, 2022.

You can read a copy of the AWC here.

Background Information

Peter Girgis 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

In the past, Peter Girgis worked for the following firms:

• SW Financial (CRD#:145012)
• Worden Capital Management (CRD #: 148366)
• Legend Securities (CRD #: 44952)
• Joseph Gunnar & Co. (CRD #: 24795)
• Brookstone Securities (CRD #: 13366)
• J.P. Turner & Company (CRD #: 43177)
• GunnAllen Financial (CRD #: 17609)
• Joseph Stevens & Company (CRD #: 35459)

Kurta Law Can Help

If you have worked with Peter Girgis and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated on behalf of investors who have lost money following broker fraud or misconduct. Kurta Law is a nationally recognized law firm and exclusively represents investors on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Our attorneys will work tirelessly to restore your lost funds and get your financial future back on track.