Investors Seek to Recover Millions Following Recommendations from David Geake

David Geake (CRD #: 3088891), a broker formerly registered with American Trust Investment Services, is the subject of multiple pending investor disputes, according to his BrokerCheck record, accessed on July 6, 2023. There are 25 investor disputes on his record, which is an especially high number. Investors should take note. 

Pending Investor Disputes

Two disputes filed on January 9 and May 22, 2023, allege that David Geake made unsuitable recommendations of alternative investments. Investors seek $648,000.

Three disputes filed in August and October 2022 allege that David Geake violated the suitability rule, breached his contract, and failed to conduct adequate due diligence. These disputes additionally alleged failure to supervise. Investors seek $280,000 in damages.

These are just a few examples of investor disputes in which the customer sought a six-figure settlement. 

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires that brokers tailor their investment recommendations to an investor’s profile, which includes information about their risk tolerance, financial goals, and age.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.

FINRA Rule 2020

FINRA Rule 2020 forbids the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

Settled Disputes

David Geake has also been involved in several settled disputes:

• On September 20, 2021, multiple investors filed a dispute alleging that, starting in 2013, David Geake recommended several unsuitable alternative investments, including Hospitality Investors Trust. The clients sought $750,000 and received a settlement of $450,000.
• Disputes filed on March 24 and May 13, 2021, named David Geake in allegations involving suitability. These disputes were settled for a total of $210,000.
• On August 26, 2020, an investor filed a dispute against David Geake alleging failure to supervise. The client sought $2.8 million and received a settlement of $560,000.  

Denied Dispute

On October 30, 2019, an investor filed a dispute against David Geake alleging unsuitable recommendations in illiquid investments. The damage amount requested was $70,000.

Investors should know that the denial of their complaint doesn’t mean the end of the case. You can still seek FINRA arbitration and recover your losses following a denial.  

Resignation from Ausdal Financial Partners

On September 14, 2018, David Geake resigned from his position at Ausdal Financial Partners following allegations that he participated in an unreported private security transaction. 

FINRA Rule 3280

FINRA Rule 3280 requires brokers to provide written notice to their firm before engaging in private securities transactions.

Background Information  

David Geake has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination 
• Series 63 – Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 – General Securities Representative Examination 
• Series 6 – Investment Company Products/Variable Contracts Representative Examination 
• Series 24 – General Securities Principal Examination 

In the past, he worked with the following firms:  

• American Trust Investment Services (CRD#:3001)
• Ausdal Financial Partners (CRD#: 7995) 
• Madison Avenue Securities (CRD#:23224) 
• Madison Avenue Advisors (CRD#:137461) 
• American General Securities Incorporated (CRD#:13626) 
• Franklin Financial Services Corporation (CRD#:5435) 

Kurta Law Can Help 

If you have suffered losses after working with David Geake, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Reach out today to start the process to recover your investment losses.