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FINRA Arbitrators Rule Expelled Brokerage Must Pay $3.2 Million for Excessive Trading

Posted on October 2nd, 2023 at 1:09 PM
FINRA Arbitrators Rule Expelled Brokerage Must Pay $3.2 Million for Excessive Trading

From the desk of Jim Eccleston at ÍøÆØ³Ô¹Ï 

Financial Industry Regulatory Authority (FINRA) arbitrators issued an award holding Salomon Whitney Financial (SW Financial) accountable for excessive, unsuitable, and unauthorized stock trading on margin in a customer account.

The FINRA panel ordered the firm to pay a total of $3.2 million, which includes $1.4 million in compensatory damages, $500,000 in punitive damages, $975,171 in returned commissions and fees, $297,208 in attorneys' fees, $7602 in costs, and $400 in arbitration fees.

According to InvestmentNews, the customer accused Peter Girgis, the financial advisor at SW Financial, of engaging in churning with high-risk stocks. The customer further alleged that Girgis did not conduct reasonable due diligence on these unsuitable investments and failed to disclose the associated risks and the strategy.

 

ÍøÆØ³Ô¹Ï LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

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