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

Return to Archive



Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


February 23, 2024
Advisor Accepts Industry Bar Amid FINRA Probe into Outside Business Activities

John A. Dougherty, a veteran advisor with 23 years of experience, agreed to an AWC (Acceptance, Waiver, and Consent) after refusing to cooperate with a regulatory investigation into allegations of undisclosed outside business activities.

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.