David Richard Geake of Northbrook Illinois a stockbroker formerly registered with Madison Avenue Securities LLC is the subject of a customer initiated investment related arbitration claim in which the customer requested $100,000.00 in damages based upon allegations that (1) misrepresentations and omissions had been made by Geake regarding alternative investments (2) due diligence was not adequately performed by the stockbroker or Madison Avenue Securities prior to direct participation program interests or limited partnership interests being recommended (3) the customer was poorly advised by Geake and (4) the customer’s account was overconcentrated in alternative investments because of Geake. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01095 (Apr. 6, 2020).
FINRA Public Disclosure indicates that Geake is the subject of six more customer initiated investment related disputes pertaining to allegations of his bad business practices while employed by securities broker dealers including Madison Avenue Securities and Ausdal Financial Partners Inc. On July 31, 2017, a customer filed an investment related complaint pertaining to Geake’s conduct in which the customer requested $200,000.00 in damages supported by allegations that the customer’s assets were invested in bad investments including business development companies and real estate securities because of the stockbroker when he was employed by Madison Avenue Securities. According to the complaint, investments contained risks beyond that which the customer was willing to take. The customer’s account was allegedly overconcentrated in aggressive illiquid investments by Geake which were not suitable for the customer.
Geake is also referenced in a customer initiated investment related complaint on March 6, 2018 in which the customer requested $53,000.00 in damages based upon allegations that Geake’s investment recommendations were not suitable for the customer. According to the complaint, the stockbroker’s advice on using 401(k) funds to pay off debts was inappropriate for the Ausdal Financial Partners customer. On September 7, 2018, a customer initiated investment related complaint in reference to Geake’s conduct was resolved for $40,000.00 in damages based upon accusations that the customer was defrauded by purchasing business development companies and real estate securities through Geake when the stockbroker was associated with Madison Avenue Securities. The complaint alleges that a fiduciary duty owed to the customer was breached by Geake. Misrepresentations were allegedly made to the customer regarding alternative investments which failed to be suitable for the customer.
The stockbroker has been identified in another customer initiated investment related complaint on October 30, 2019 where the customer sought $70,000.00 in damages founded on accusations that the customer’s assets were inappropriately placed in illiquid investments. The complaint also alleges that funds held in a joint account were not invested by Geake according to the customer’s expectations.
Geake was terminated by Madison Avenue Securities on May 18, 2015. He was terminated by Ausdal Financial Partners on September 14, 2018 founded on accusations that his securities transactions were executed away from the securities broker dealer without its permission. Geake has been employed by American Trust Investment Services Inc. since September 14, 2018.
