Erez Law is currently investigating American Trust Investment Services, Inc. broker David Geake (CRD# 3088891) regarding unsuitable investment recommendations. He has been registered with American Trust Investment Services, Inc. in Chicago, Illinois since 2018. Previously, he was registered with Ausdal Financial Partners, Inc. in Northbrook, Illinois from 2016 to 2018, when he was terminated regarding, “Engaging in an unreported private security transaction.” Previously, he was registered with Ausdal Financial Partners, Inc. in Northbrook, Illinois, from 2016 to 2018 and with Madison Avenue Securities, LLC in Northbrook, Illinois, from 2009 to 2015.
In July 2023, FINRA barred him after he “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.” FINRA found that he personally invested $100,000 in the company and was also a member of its Board of Directors. According to the Acceptance, Waiver & Consent (AWC), the broker told the investors that their risk of loss was minimal. Additionally, FINRA found that “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.” FINRA report that “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.”
David Geake Customer Complaints
He has been the subject of 38 customer complaints between 2011 and 2023, two of which were denied and two were closed without action and two were withdrawn, according to his CRD report. The most recent complaints are regarding:
November 2023. “Claimants allege unsuitable recommendations of alternative investments, primarily in NorthStar Healthcare REIT. The dates vary for the numerous claimants listed.” The case is currently pending.
October 2023. “Unsuitable investments, due diligence, failure to supervise.” The customer is seeking $1,500,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
October 2023. “Unsuitable recommendations of alternative investments.” The customer is seeking $1,000,000 in damages. The complaint was regarding direct investment losses, and it took place while he was registered with Madison Avenue Securities, LLC.
October 2023. “Unsuitable investments, failure to supervise, Due diligence.” The customer is seeking $90,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
October 2023. “Unsuitable investments, due diligence, failure to supervise.” The customer is seeking $35,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
September 2023. “Violation of federal and state securities laws, breach of fiduciary duty, suitability, failure to supervise.” The customer is seeking $80,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
September 2023. “Unsuitable recommendations of alternative investments and Market Serv.” The customer is seeking $500,000 in damages. The complaint was regarding direct investment losses, and it took place while he was registered with Madison Avenue Securities, LLC and Ausdal Financial.
September 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.” The customer is seeking $500,000 in damages.” The complaint was regarding MrktServ and alternative investments, and it took place while he was registered with Ausdal Financial Partners, Inc.
September 2023. “Unauthorized trading, unsuitable investments.” The customer is seeking $50,001 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
August 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.” The customer is seeking $165,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
August 2023. “Suitability, Failure to supervise, negligence, breach of contract, breach of fiduciary duty, misrepresentation, violation of Regulation Best Interest.” The customer is seeking $100,000 in damages. The complaint was regarding fixed annuities, equity OTC, and alternative investments, and it took place while he was registered with American Trust Investment Services, Inc.
July 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.” The customer is seeking $50,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
June 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.” The customer is seeking $50,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
May 2023. “Unsuitable recommendations of alternative investments.” The customer is seeking $588,000 in damages. The complaint was regarding direct investments, and it took place while he was registered with Madison Avenues Securities, Inc.
April 2023. “Failure to Supervise, Breach of Fiduciary Duty, Breach of Contract, Violation of Securities Law.” The customer is seeking $25,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with American Trust Investment Services, Inc.
January 2023. “Due Diligence, Breach of Fiduciary Duty, Misrepresentation, Breach of Contract.” The customer is seeking $76,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds and Gladstone Land Fund, and it took place while he was registered with Ausdal Financial Partners, Inc.
January 2023. “Due Diligence, Breach of Fiduciary Duty, Misrepresentation, Breach of Contract.” The customer sought $39,000 in damages, and the case was settled for $14,999. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
January 2023. “Unsuitable recommendations of alternative investments.” The customer is seeking $60,000 in damages. The complaint was regarding direct investments, and it took place while he was registered with Madison Avenue Securities, LLC.
November 2022. “Lack of Due Diligence, Breach of Fiduciary Duty, Misrepresentation and Breach of Contract.” The customer is seeking $75,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
October 2022. “Suitability, Failure to conduct Due Diligence, Breach of Contract, and Failure to Supervise.” The customer sought $100,000 in damages, and the case was settled for $36,929.41. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
October 2022. “Suitability, Failure to conduct Due Diligence, Breach of Contract, and Failure to Supervise.” The customer is seeking $50,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
August 2022. “Suitability, misrepresentation.” The customer sought $25,000 in damages, and the case was settled for $14,000. The complaint was regarding American Trust Investment Services, Inc., and it took place while he was registered with Ausdal Financial Partners, Inc.
August 2022. “Unsuitable Investments, Breach of contract, failure to supervise, and breach of fiduciary duty.” The customer is seeking $130,000 in damages. The complaint was regarding GWG Holdings Inc. L Bonds, and it took place while he was registered with Ausdal Financial Partners, Inc.
August 2022. “Unsuitable recommendations, Failure to supervise, due diligence, and breach of contract.” The customer sought $530,000 in damages, and the case was settled for $22,500. The complaint was regarding GWG Holdings Inc. L Bonds, direct investments, and real estate securities, and it took place while he was registered with Ausdal Financial Partners, Inc.
March 2022. “Claimants allege unsuitable recommendations of alternative investments.” The customer sought $500,000 in damages, and the case was settled for $22,500. The complaint was regarding direct investments, and it took place while he was registered with Madison Avenue Securities.
September 2021. “Claimants allege unsuitable recommendations of multiple alternative investments, including Hospitality Investors Trust starting in 2013. There are a total of 13 claimants listed with three different advisers who are named as subjects of this investment related arbitration since they may have been the adviser on record for one or more claimants listed on this arbitration.” The customer sought $750,000 in damages, and the case was settled for $450,000. The complaint was regarding direct investments and real estate securities, and it took place while he was registered with Madison Avenue Securities.
May 2021. “Unsuitable investments.” The case was settled for $110,000. The complaint was regarding interest in Rep’s private company, and it took place while he was registered with Madison Avenue Securities.
May 2021. “Unsuitable investments, breach of fiduciary duties, lack of supervision.” The case was settled for $40,000. The complaint took place while he was registered with Madison Avenue Securities, LLC, Ausdal Financial Partners, Inc., and American Trust Investment Services, Inc., and it was regarding unit investment trusts (UITs) and private placements.
March 2021. “Suitability.” The customer sought $500,000 in damages, and the case was settled for $100,000. The complaint was regarding direct investments, and it took place while he was registered with Madison Avenue Securities.
August 2020. “Failure to supervise. In 2016 the individual pledged $2.5 million of collateral for MrktServ in exchange for shares in the company. Then in 2017, individual loaned MrktServ, Inc.$200,000 for larger equity ownership in the company.” The customer sought $2,800,000 in damages, and the case was settled for $560,000. The complaint took place while he was registered with Ausdal Financial Partners, Inc., and the complaint was regarding private loans and collateralized assets.
April 2020. “Claimants allege failure to conduct Due Diligence on several points, unsuitable recommendation, overconcentration, misrepresentations and omissions in violation of FINRA regulations in the sale of Alternative Investments.” The customer sought $100,000 in damages, and the case was settled for $20,000. The complaint was regarding direct investments, and it took place while he was registered with Madison Avenue Securities.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, American Trust Investment Services, Inc. may be liable for investment or other losses suffered by David Geake’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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