David Richard Geake of Chicago, Illinois, a stockbroker registered with American Trust Investment Services Inc., is the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer requested $965,793.00 in damages based upon allegations of breach of contract, negligence, fraud, violation of Illinois securities laws, violation of FINRA Rules 2311, 2120, and 2010, and breach of fiduciary duty relating to Geake’s sales of GWG L Bonds during the time that he was associated with American Trust Investment Services as well as Ausdal Securities Inc. and Madison Avenue Securities Inc. Financial Industry Regulatory Authority (FINRA) Arbitration No. 22-00572 (April 4, 2022).
FINRA Public Disclosure shows that Geake has been identified in twelve additional customer initiated investment related disputes concerning accusations of his activities while he was employed by securities broker dealers, including Madison Avenue Securities and Ausdal Financial Partners. Geake is referenced in a customer initiated investment related written complaint which was settled for $40,000.00 on September 7, 2018, founded on allegations of securities fraud, misrepresentation, breach of fiduciary duty, and unsuitable trading for the customer’s Madison Avenue Securities investment account. According to the complaint, the customer sustained losses on a business development company (BDC), real estate security, and fixed annuity because of Geake.
On July 8, 2020, another customer initiated investment related FINRA securities arbitration claim regarding Geake’s conduct was resolved for $20,000.00 in damages supported by accusations of alternative investments being misrepresented to the customer by Geake when he was registered with Madison Avenue Securities. FINRA Arbitration No. 20-01095. The claim alleges that the securities broker dealer failed to complete due diligence before Geake made investment recommendations to the customer. According to the claim, the customer’s account was overconcentrated in alternative investments, including DPPs and LPs.
Geake is also identified in a customer initiated investment related FINRA securities arbitration claim which was settled for $560,000.00 in damages based upon allegations of failure to supervise by Ausdal Financial Partners concerning a private loan and assets. FINRA Arbitration No. 20-01953 (March 4, 2021). According to the claim, $2,500,000.00 had been pledged by the client as collateral for MrktServ in return for shares. An additional $200,000.00 had allegedly been loaned to MrktServ by the customer to obtain an equity share.
On March 24, 2021, a different customer filed an investment related FINRA securities arbitration claim concerning Geake’s conduct where the customer sought $500,000.00 in damages founded on accusations of unsuitable trading relating to direct investments, including DPP interests and LP interests by Geake while he was employed by Madison Avenue Securities. FINRA Arbitration No. 21-00223 (March 24, 2021).
Geake is also the subject of a customer initiated investment related FINRA securities arbitration claim which was resolved for $40,000.00 in damages supported by allegations of breach of fiduciary duty and unsuitable trading relating to the customer’s investments in unit investment trusts and private placements. FINRA Arbitration No. 21-01137 (November 18, 2021). The claim alleges failure to supervise by American Trust Investment Services, Ausdal Financial Partners, and Madison Avenue Securities.
Geake is referenced in another customer initiated investment related FINRA securities arbitration claim which was settled for $450,000.00 in damages based upon accusations that unsuitable recommendations had been made by Geake concerning Hospitality Investors Trust and other alternative investments. FINRA Arbitration No. 21-01620 (November 29, 2021). According to the claim, the customer sustained damages on DPPs, LPs, and a real estate security recommended during the time that Geake was associated with Madison Avenue Securities.
On April 14, 2022, an additional customer initiated investment related FINRA securities arbitration claim involving Geake’s conduct was resolved for $110,000.00 in damages founded on allegations of bad private placements and unit investment trusts tied to the customer’s private company. FINRA Arbitration No. 21-01177.
Geake was registered with Ausdal Financial partners Inc. as a stockbroker and investment adviser representative between February 29, 2016, and September 17, 2018. He was permitted to resign by Ausdal Financial Partners, supported by accusations of his unapproved private securities transaction.
Geake has been employed by American Trust Investment Services as a stockbroker since September 14, 2018, and American Trust Investment Services Advisory Inc. as an investment adviser representative since September 17, 2019.
