Peter N. Girgis, of New York, New York, a stockbroker formerly registered with Worden Capital Management LLC, has been fined $7,500.00 and suspended for nine months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he excessively traded in customer accounts during the time that he was employed by Legend Securities and Worden Capital Management. Letter of Acceptance, Waiver, and Consent No. 2017056432607 (December 1, 2021).
According to the AWC, between September of 2015 and December of 2018, excessive trades were made by Girgis in customer accounts. The AWC states that four customers were advised by Girgis on a high-frequency trading strategy. Each of Girgis’ customers held concentrated positions for short periods. In most cases, customers went along with Girgis’ recommendations, which meant that Girgis controlled their accounts.
Between February of 2017 and December of 2018, 61 trades were made by Girgis in the first customer’s account. This led to the customer having an annualized cost-to-equity ratio of 84.63 percent and an annualized turnover rate of 18.66. The customer was charged $81,437.00 in commissions, $93,521.00 in trading costs, and $9,602.00 in margin interest. The customer realized losses of $137,215.00 because of Girgis.
Between April of 2016 and December of 2018, 45 trades were executed by Girgis in the second customer’s account. This resulted in an annualized cost-to-equity ratio of 46.84 percent and an annualized turnover rate of 10.64. The customer was charged $44,060.00 in commissions and $46,182.00 in trading costs. Girgis caused the customer to experience $34,929.00 in realized losses.
FINRA states that 33 trades were made by Girgis in the third customer’s account between March of 2016 and June of 2017. The customer’s account had an annualized cost-to-equity ratio of 56.6 percent and an annualized turnover rate of 11.81. Girgis caused the customer to pay commissions of $32,195.00 and trading costs of $33,630.00. The customer realized losses of $18,542.00.
In the fourth customer’s account, Girgis made 44 trades between September of 2015 and December of 2018. The customers’ account had an annualized cost-to-equity ratio of 33.03 percent and an annualized turnover rate of 7.31. Girgis’ trading resulted in the customer having to pay commissions of $24,185.00 and trading costs of $26,289.00. This caused the customer to realized losses of $33,887.00.
Girgis violated FINRA Rules 2010 and 2111 by making unsuitable and excessive trades in customer accounts.
Girgis has been identified in six customer initiated investment related disputes regarding allegations of his wrongdoing during the period that he was employed by Legend Securities, Joseph Gunnar Co. LLC, Brookstone Securities Inc., and JP Turner Company LLC. FINRA Public Disclosure shows that a customer initiated investment related FINRA securities arbitration claim involving Girgis’ activities was settled for $9,999.00 in damages based upon accusations of misrepresentation, unsuitable trading, churning, and fraud by Girgis concerning stock and over-the-counter equities transactions at Brookstone Securities. FINRA Arbitration No. 15-03051 (May 26, 2016).
On March 22, 2017, another customer initiated investment related complaint concerning Girgis’ conduct was resolved for $4,999.00 in damages supported by allegations of churning by the stockbroker at Legend Securities.
Girgis is also identified in a customer initiated investment related FINRA securities arbitration claim which was settled for $65,000.00 in damages founded on accusations of unauthorized trading, breach of contract, negligence, and misappropriation by Girgis relating to stock and over-the-counter equities trades at Joseph Gunnar Co. FINRA Arbitration No. 16-01201 (September 15, 2017).
Girgis was registered with Worden Capital Management between November 4, 2016, and December 10, 2019. He has been registered with SW Financial since December 10, 2019.
