There are options for clients of former SW Financial and Worden Capital Management LLC broker Peter Girgis (CRD# 4520444), who is accused of unsuitable investment recommendations. He was registered with SW Financial in New York, New York, from 2019 to 2022. Previously, he was registered with Worden Capital Management LLC in New York, New York, from 2016 to 2019, and with Legend Securities, Inc. in New York, New York, from 2013 to 2016.
In April 2013, FINRA sanctioned him to pay a $5,000 civil and administrative penalty and fine, and suspended him for three months after it was found that he, “ failed to disclose, and in some instances to timely disclose on his uniform application for securities industry registration or transfer (form U4) four unsatisfied judgments and/or liens.”
In June 2013, he was terminated from Joseph Gunnar & Co., LLC, in Staten Island, New York, related to, “discharged due to violating conditions per FINRA disciplinary action AWC suspension commencing 5/20/13; Girgis accepted conditions but violated them by conversing with a client on 5/24/13. The same client produced a statement he said he received from girgis. Statement was clearly altered with info from another existing jgun customer. During our investigation, Jgun received information indicating that Peter Girgis likely played a role in the client obtaining the other customer’s statement used for alteration.” He was registered with the firm from 2012 to 2013.
In October 2014, FINRA sanctioned him to pay a $5,000 civil and administrative penalty and fine and suspended him for 45 days, after he “consented to the sanctions and to the entry of findings that he sent nonpublic personal information about a customer to an unauthorized individual, which caused a violation of regulation s-p of the securities exchange act of 1934 on the part of his member firm. The findings stated that Girgis sent, via facsimile, a monthly account statement for the customer to another customer without the customer’s knowledge or permission. The account statement contained nonpublic customer information, including the account number, name, home address, account holdings and value of the customer’s account at the firm. Girgis knew, at the time he provided the account statement that he was not permitted to do so. Girgis did not provide the customer with a reasonable opportunity to opt out of the disclosure to the other customer.”
In December 2021, FINRA sanctioned him to pay a $7,500 civil and administrative penalty and fine, $169,677 in restitution, and suspended him for nine months starting in January 2022, after he “consented to the sanctions and to the entry of findings that he engaged in excessive and quantitatively unsuitable trading in customer accounts.” According to FINRA, he “recommended high frequency trading in the customers’ accounts with each customer often holding concentrated positions in one or two securities for short periods of time. Girgis’s customers routinely followed his recommendations and, as a result, Girgis exercised de facto control over the customers’ accounts. Girgis’s trading of the customers’ accounts resulted in high turnover rates and cost-to-equity ratios as well as significant losses. As a result of Girgis’s excessive trading, the customers suffered collective realized losses of $224,573, while paying total trading costs of $199,622, including commissions of $181,877.”
In January 2022, the state of Illinois “provides, inter alia, that the registration of a salesperson may be denied, suspended or revoked if the Secretary of State finds that the salesperson has had membership or association with any self-regulatory organization registered under the Federal 1934 Act or the Federal 1974 Act suspended, revoked, refused, expelled, cancelled, barred, limited in any capacity, or otherwise adversely affected in a similar manner arising from any fraudulent or deceptive act or a practice in violation of any rule, regulation or standard duly promulgated by the self-regulatory organization,” begging in June 2022.
Peter Girgis Customer Complaints
He has been the subject of 10 customer complaints between 2008 and 2023, according to his CRD report. The most recent complaints were regarding:
March 2023. “Unsuitability, excessive trading/commissions, unauthorized trading, negligence.” The customer is seeking $5,445,776 in damages, and the case is currently pending. The complaint took place while he was registered with SW Financial, and it was regarding equity OTC and common and preferred stocks.
December 2022. “Unsuitable investments, churning, failure to supervise, negligence.” The customer is seeking $510,152.82 in damages, and the case is currently pending. The complaint took place while he was registered with SW Financial and Worden Capital Management LLC, and it was regarding equity OTC and common and preferred stocks.
May 2022. “Girgis was a subject of the customer’s complaint against his member firm that asserted the following causes of action: violations of federal securities laws; violations of South Carolina Securities Act; misrepresentations and omissions; violation of New York Consumer Protection Act- N.Y. GEN. BUS. LAW § 349; breach of contract; common law fraud; breach of fiduciary duty; and negligence and gross negligence.” The customer was awarded $1,413,166.10 in compensatory damages. The complaint took place while he was registered with SW Financial.
March 2022. “Churning, excessive commissions, unauthorized trading, unsuitability, negligence, breach of contract, fraud.” The customer is seeking $1,284,892.10 in damages and the case is currently pending. The complaint took place while he was registered with Worden Capital Management LLC, and it was regarding equity OTC and common and preferred stocks.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, SW Financial and Worden Capital Management LLC may be liable for investment or other losses suffered by Peter Girgis’ customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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