INVESTORS: American Trust Investment Services Broker was named two pending customer disputes alleging breach of fiduciary duty and unsuitable investment recommendations.
David Richard Geake (CRD#: 3088891) is registered as a broker and investment adviser with American Trust Investment Services, where he has been employed since 2018. Previously, Geake was registered as a broker and investment adviser with Ausdal Financial Partners from 2016 until 2018.
Most recently, Geake was accused of selling GWG L Bonds to his clients.
Geake has twelve disclosures on his BrokerCheck report. Two customer disputes filed against Geake were closed with no action taken, and two were denied.
April 2022 Customer Dispute
Status: Pending
Allegations: Breach of fiduciary duty. violation of IL Securities Law, FINRA Rules 2010, 2120, 2311, fraud, negligence, breach of contract
Damages Amount Requested: $965,793.00
September 2021 Customer Dispute
Status: Settled
Allegations: 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.
Damages Amount Requested: $750,000.00
Settlement Amount: $450,000.00
May 2021 Customer Dispute
Status: Settled
Allegations: Unsuitable investments
Settlement Amount: $110,000.00
May 2021 Customer Dispute
Status: Settled
Allegations: Unsuitable investments, breach of fiduciary duties, lack of supervision
Settlement Amount: $40,000.00
March 2021 Customer Dispute
Status: Pending
Allegations: Suitability
Damages Amount Requested: $500,000.00
August 2020 Customer Dispute
Status: Settled
Allegations: 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, [an] individual loaned MrktServ, Inc.$200,000 for larger equity ownership in the company.
Damages Amount Requested: $2,800,000.00
Settlement Amount: $560,000.00
April 2020 Customer Dispute
Status: Settled
Allegations: 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.
Damages Amount Requested: $100,000.00
Settlement Amount: $20,000.00
September 2018 Employment Separation After Allegations
Firm Name: Ausdal Financial Partners, Inc.
Termination Type: Permitted to Resign
Allegations: Engaging in an unreported private security transaction.
Broker Comment: Disagreement over the interpretation of whether a disclosed OBA included a private securities transaction.
June 2017 Customer Dispute
Status: Settled
Allegations: Alleged activity occurred prior to Mr. Geake joining Ausdal Financial Partners. However, the customer subsequently transferred her accounts to Ausdal. Customer alleges securities fraud, misrepresentation, tax losses and breach of fiduciary duty based on the conduct of former Madison Avenue Securities brokers [Redacted], David Geake, and [Redacted]. Alleged activity occurred in or around June 2015.
Damages Amount Requested: $41,984.00
Settlement Amount: $40,000.00
March 2011 Customer Dispute
Status: Settled
Allegations: On 10/18/2010 the firm received a letter from the customers’ attorney alleging over concentration in REITs and a demand to return the total amount invested in the REITs to the customers in exchange for the REITs. On 03/16/2011 claimants filed an arbitration alleging misrepresentation and suitability issues with the purchase of three REITs.
Damage Amount Requested: $885,279.83
Settlement Amount: $140,000.00
Broker Comment: On 05/10/2012 claimants and plaintiffs engaged in mediation and settled the matter for $140,000. The settlement was between the firm and the claimants. The settlement agreement represents a compromise of a disputed claim and the payment is not an admission of liability on the part of the firm. The RR did not contribute financially to the settlement.
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