On 9/15/2020, FINRA filed a note to begin a preliminary determination to recommend disciplinary action against Girgis. This came after an allegation that he engaged in excessive trading and churning as well as recommended an “unsuitable active trading strategy” to his clients. FINRA has not yet taken any further action in the matter.
A client dispute filed on 2/21/2017 filed against Peter Girgis alleged churning and excessive commissions on his part. The client requested damages of $21,000, and the firm settled for $4,999.00. The report is based on a notification to FINRA and a request for arbitration. Girgis’ comment indicated that because the amount was under $5,000 and settled prior to arbitration, it was not reportable to FINRA.
The next client dispute was filed on 5/6/2016. The client alleged misappropriation, unauthorized transactions, unsuitability, and other, similar actions. The client requested damages of $687,000.00, and the case was settled for $65,000. Girgis denied the allegations, and stated that the case was fraudulent and a repeat of a similar claim filed on 5/24/2013, while he was employed with Joseph Gunnar. (This incident is described below.)
Another client dispute filed on 11/20/2015 alleged “fraudulent and negligent acts, breach of contractual requirements, churning, unsuitability, and negligent misrepresentation,” and requested damages of $100,000. Girgis and another representative settled the case for $9,999.00 as “nuisance value,” and deny all allegations.
Girgis was suspended for 45 days and fined $5,000 in 2014 after he allegedly faxed an client’s account statement to another customer. This statement contained nonpublic information such as the client’s name, address, account number, account holdings, and the value of the client’s account. The suspension ended 12/31/2014.
On 5/24/2013, a client filed a dispute in which it was claimed that the company refused to combine one account valued at $60,000 with another one valued at $687,000. However, investigation showed that the account statement provided to the firm was another client’s, and significantly altered to show claimant’s account with a larger amount of funds. Girgis denies the allegation that he supplied this client with another client’s statement, and stated that he was never informed of any written complaint.
Joseph Gunnar discharged Girgis on 6/7/2013 after allegedly speaking with a client while on suspension, including sending one client’s statements to another. Gunnar’s investigation found that Girgis “likely played a role” in the client obtaining the statement. Girgis denies the allegations.
Girgis had a previous FINRA disciplinary action for failing to report four New York income tax liens totaling $51,065. FINRA imposed a three-month suspension ending on 8/19/2013, and a fine of $5,000.
Accusation Of Churning
Churning is when a stockbroker buys and sells securities in a customer’s account solely to generate commissions. It violates securities laws and FINRA rules.
Under FINRA Suitability Rule 2111 stockbrokers must have a reasonable basis for recommending a series of transactions in a customer’s account. Transactions that may appear suitable when viewed in isolation may be excessive or unsuitable when view in aggregate given the customer’s investment profile.
Churning is one the 15 top types of controversies in customer arbitration claims. A FINRA arbitration claim for excessive trading or “churning” will be successful if: the stockbroker controlled or solicited the activity in the account and the activity in the account was excessive based on the claimant’s risk tolerance and investment objectives.
Did You Invest With Peter Girgis?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.