Peter Girgis, Formerly with SW Financial, Named in Customer Disputes Alleging Unsuitable Investment Recommendations and Unsuitable Trading

INVESTORS: Former SW Financial broker Peter Girgis was named in multiple customer disputes following allegations of selling unsuitable investment recommendations and unsuitable trading.

Peter Girgis (CRD: 4520444) was registered as a broker with SW Financial from 2019 until 2022. Girgis was previously registered as a broker with Worden Capital Management from 2016 until 2019.

Girgis has fourteen disclosures on his BrokerCheck report. One customer dispute was denied with no action taken and one was closed with no action taken. Five disclosures occurred prior to 2014.

January 2023 Customer Dispute

Status: Pending

Allegations: Excessive trading, excessive commissions, unsuitable trading, misrepresentation

Damage Amount Requested: $1,057,195.00

December 2022 Customer Dispute

Status: Pending

Allegations: Unsuitable investments, churning, failure to supervise, negligence

Damage Amount Requested: $510,152.82

March 2022 Customer Dispute

Status: Pending

Allegations: Churning, excessive commissions, unauthorized trading, unsuitability, negligence, breach of contract, fraud

Damage Amount Requested: $1,284,892.10

Broker Comment: Rep denies any wrongdoing and will vigorously defend this action. This is a mass claim filed by over 50 unrelated customers who were solicited by the notorious non-attorney group CSAG, which promises recoveries to unsuspecting investors and then extorts money out of innocent brokers and their firms by filing frivolous claims and trying to force settlements in order to avoid expensive litigation. Of the over 50 customers in this claim, I was only associated with 6 of the customers at some point in time. This claim involves experienced and affluent investors who sought to speculate with some of their assets in the hopes of achieving stock market gains – when they were unsuccessful, they were told by CSAG that they could illegitimately recover their market losses. These are false claims, and I will seek all damages and costs as a result of having to unnecessarily defend them.

January 2022 Regulatory Judgment

Status: Final

Initiated By: Illinois

Allegations: Section 8.E(1)(j) of the Illinois Securities Law of 1953 [815 ILCS 5] (“the Act”) 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

Resolution: Stipulation and Consent

Bar: Bar (Permanent)

Registration Capacities Affected: All Capacities

Start Date: 6/6/2022

Sanctions: N/A

December 2021 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Without admitting or denying the findings, Girgis consented to the sanctions and to the entry of findings that he engaged in excessive and quantitatively unsuitable trading in customer accounts. The findings stated that Girgis 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.

Resolution: Acceptance, Waiver & Consent (AWC)

Sanctions: Civil and Administrative Penalty(ies)/Fine(s)

Amount: $7,500.00

Sanctions: Restitution

Amount: $169,677.00

Sanctions: Suspension

Registration Capacities Affected: All Capacities

Duration: Nine Months

Start Date: 1/3/2022

End Date: 10/2/2022

February 2017 Customer Dispute

Status: Settled

Allegations: Churning; excessive commissions

Damage Amount Requested: $21,000.00

Settlement Amount: $4,999.00

Broker Comment: This item is being reported based on a notification by FINRA that a request for mediation is considered reportable if alleged damages exceed $5,000. As the item had been settled prior to evolving to an arbitration and for less than $5,000, I was told by my counsel that it was not reportable.

May 2016 Customer Dispute

Status: Settled

Allegations: Statement of Claim alleges: Misappropriation of funds, unauthorized transactions, misrepresentations, recklessness, negligence, breach of contract, and unsuitability.

Damage Amount Requested: $687,000.00

Settlement Amount: $65,000.00

Broker Comment: RR denies misrepresenting any account information or sending any altered materials whatsoever. RR states the customer knew full and well the amounts he now claims as “damages” far exceeded the actual funds he deposited into his brokerage account. Furthermore, client attempted to fraudulently claim contrived losses from Joseph Gunnar & Co LLC three years ago and is now trying to do the same through the arbitration process. Settled to avoid further high costs and uncertainties of litigation. As stated previously, the customer knew that he did not have the funds that he later claimed to have “lost,” and rep did not send any altered materials.

November 2015 Customer Dispute

Status: Settled

Allegations: Statement of Claim alleges: Fraudulent and Negligent Acts, Breach of Contractual Requirements, Churning, Unsuitability, and Negligent Misrepresentation.

Damage Amount Requested: $100,000.00

Settlement Amount: $9,999.00

Broker Comment: This claim was settled for nuisance value to avoid the much higher cost and uncertainty of arbitration. The settlement was jointly paid by myself and another representative. We maintain that the claimant’s allegations are without merit, that the actual losses in the account of approximately $6,000 were attributable to market losses, and that neither I nor the other representative committed any misconduct.

October 2014 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Without admitting or denying the findings, Girgis 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 hte 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 hte 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.

Resolution: Acceptance, Waiver & Consent (AWC)

Sanctions: Civil and Administrative Penalty(ies)/Fine(s)

Amount: $5,000.00

Sanctions: Suspension

Registration Capacities Affected: Any Capacities

Duration: 45 Days

Start Date: 11/17/2014

End Date: 12/31/2014

Regulator Statement: Fine paid in full on November 24, 2014.

The Sonn Law Group is currently investigating allegations surrounding Peter Girgis. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.