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 Eccleston Law 

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.

 

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

Tags: eccleston, eccleston law, finra

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