Investors Seek Over $8 Million in Disputes with Peter Girgis

Peter Girgis (CRD #: 4520444), a broker formerly registered with SW Financial, allegedly executed unauthorized and excessive trades, according to his BrokerCheck record, accessed on March 30, 2023. Keep reading if you want to know more about his alleged conduct as a broker.

Pending Disputes

Four pending disputes, filed from March 2022 to March 2023, name Peter Girgis in allegations of the following:

• Fraud
• Unauthorized trading
• Excessive trading and unsuitable investment recommendations
• Excessive commissions
• Misrepresentation of facts
• Failure to supervise
• Negligence
• Breach of contract

Investors seek a total of $8,298,015.92 in damages.

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 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 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 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 2010

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

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 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 found 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:

• $7,500 fine
• $169,677 in restitution
• 9-month suspension

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

You can read a copy of the AWC here.

Settled Dispute

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.

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

Peter Girgis has 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)
• 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.