Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker David Geake (Geake), previously associated with American Trust Investment Services, Inc., has at least 27 disclosable events. These events include 25 customer complaints, 2 tax liens, alleging that Geake recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint on March 05, 2025.
Unsuitable recommendations of alternative investments.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $167,797.00 on January 21, 2025.
Violation of IL Securities Act of 1953; Breach of Fiduciary Duty; Negligent Hiring and Retention; Violation of Reg BI; FINRA Rules 2010, 2120, 3110; Failure to Supervise; Breach of Contract
FINRA BrokerCheck shows a pending customer complaint with a damage request of $200,000.00 on January 21, 2025.
Breach of Fiduciary Duty; Suitability; Misrepresentation; FINRA Rules 2010, IM-2310-2 & 2020; Failure to Supervise; Breach of Contract
FINRA BrokerCheck shows a pending customer complaint with a damage request of $75,000.00 on January 21, 2025.
Breach of Fiduciary Duty and Negligence, Investments not appropriate for client.
FINRA BrokerCheck shows a pending customer complaint on November 20, 2024.
Claimants allege unsuitable recommendations of alternative investments.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $325,000.00 on July 08, 2024.
Breach of Fiduciary Duty, Failure to Supervise, Breach of Contract
FINRA BrokerCheck shows a pending customer complaint with a damage request of $100,000.00 on July 01, 2024.
Violations of Federal Securities Laws; Violation of IL Consumer Fraud and Deceptive Business Practices Act; Violation of IL Securities Law; Breach of Contract; Negligence and Gross Negligence.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $111,000.00 on April 15, 2024.
Negligence; Breach of Fiduciary Duty; Breach of Contract; Unjust Enrichment; Consumer Fraud, Violation of the IL Securities Law. Mulholland and Patterson purchased GWG L Bonds in 2017 and 2018 while David Geake was registered with Ausdal Financial Partners, Inc.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $35,000.00 on March 22, 2024.
Unsuitable recommendations of alternative investments
FINRA BrokerCheck shows a pending customer complaint on March 19, 2024.
While registered as an investment advisor in the state of Illinois, David Richard Geake entered into a Letter of Acceptance, Waiver and Consent (\\u201cAWC\\u201d) with FINRA a self-regulatory organization registered under Federal Act. Pursuant to AWC No. 2021072679901, on July 23, 2023, Geake violated Rules 3280 and Rule 2010, based upon the following facts. Prior to association with Ausdal Partners Geake raised funds through sale of common stock, invested $10,000 in and was on the Board of Directors of a startup comp
FINRA BrokerCheck shows a pending customer complaint with a damage request of $32,000.00 on March 18, 2024.
Violations of Federal Securities Laws, Violation of IL Consumer Fraud and Deceptive Business Practices Act, Violation of IL Securities Law, Breach of Contract, Common Law Fraud, Breach of Fiduciary Duty, Negligence and Gross Negligence, related to the purchase of a GWG L bond in June 2018.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $410,000.00 on January 29, 2024.
Negligence; Misrepresentation and Omissions of Material Facts; Breach of Fiduciary Duty; Failure to Supervise.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $100,000.00 on January 05, 2024.
Negligence; Breach of fiduciary duty; Negligent Supervision
FINRA BrokerCheck shows a settled customer complaint on November 29, 2023.
Claimants allege unsuitable recommendations of alternative investments, primarily in NorthStar Healthcare REIT. The dates vary for the numerous claimants listed.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,500,000.00 on October 23, 2023.
Unsuitable investments, due diligence, failure to supervise
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,000,000.00 on October 17, 2023.
Unsuitable recommendations of alternative investments.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $90,000.00 on October 11, 2023.
Unsuitable investments, failure to supervise, Due diligence
FINRA BrokerCheck shows a settled customer complaint with a damage request of $80,000.00 on September 27, 2023.
Violation of federal and state securities laws, breach of fiduciary duty, suitability, failure to supervise
FINRA BrokerCheck shows a settled customer complaint with a damage request of $500,000.00 on September 26, 2023.
Unsuitable recommendations of alternative investments and Market Serv
FINRA BrokerCheck shows a pending customer complaint with a damage request of $500,000.00 on September 25, 2023.
Selling away, Over concentration in alternative investments, failure to act in the ‘best interest’ of the claimant, breach of fiduciary duty, breach of contract, failure to supervise, negligence, violation of the federal securities laws.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $50,001.00 on September 15, 2023.
Unauthorized trading, unsuitable investments
FINRA BrokerCheck shows a pending customer complaint with a damage request of $165,000.00 on August 28, 2023.
Unsuitable investments, failure to act in the ‘best interest’ of claimants, misrepresentation and omission, breach of fiduciary duty, breach of contract, failure to supervise, violation of the federal securities laws
FINRA BrokerCheck shows a pending customer complaint with a damage request of $100,000.00 on August 09, 2023.
Suitability, Failure to supervise, negligence, breach of contract, breach of fiduciary duty, misrepresentation, violation of Regulation Best Interest
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on August 08, 2023.
Demand for settlement, related to purchase of GWG L Bond in January 2017, alleging unsuitable investment, lack of due diligence and failure to supervise.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $50,000.00 on July 28, 2023.
Unsuitable investments, Failure to act in the ‘best interest’ of claimants, Breach of fiduciary duty, Breach of contract, Failure to supervise, Violation of federal securities law.
FINRA BrokerCheck shows a final customer complaint on July 10, 2023.
Without admitting or denying the findings, Geake consented to the sanction and to the entry of findings that he participated in a private securities transaction by soliciting elderly investors, a husband and wife, to pledge approximately $15 million of securities as collateral to guarantee a $2.5 million loan from a bank on behalf of a startup company without providing written notice to his member firm. The findings stated that Geake personally invested $100,000 in the company and was also a member of its Board of Directors. Geake assured the couple that their risk of investment loss was minimal. Geake structured the transaction and facilitated the paperwork on behalf of the couple. The pledge of securities as collateral for the loan was an offer of a security and the couple received shares of the company’s common stock in exchange for their guarantee of the loan. By soliciting this pledge of securities and facilitating the transaction, Geake participated in a private securities transaction. Subsequently, the company fully defaulted on the bank loan and closed its business and the bank called for the loan to be paid in full. As a result, the couple were required to repay the entire $2.5 million bank loan with interest. Although neither of the investors were firm customers, the firm’s policies prohibited its registered representatives, including Geake, from engaging in any private securities transaction without prior express written permission. The findings also stated that Geake incorrectly attested to the firm on multiple annual compliance questionnaires that he had not participated in any private securities transactions.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $25,000.00 on April 18, 2023.
Failure to Supervise, Breach of Fiduciary Duty, Breach of Contract, Violation of Securities Law
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail investor’s best interest.
In addition to specific investments being recommended, under Reg BI, a broker must also understand the type of account that their client would need in order to meet their care obligations. The SEC has stated that the type of securities account an investor has can greatly affect a customers’ costs and overall investment returns. Further, different account types can offer and support different features, products, securities, or services, and account type would not be appropriately applied in a one size fits all manner.
Geake has been in the securities industry for more than 24 years. Geake has been registered as a Broker with American Trust Investment Services, Inc. since 2018.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
