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SEC Alleges Derren Geiger Involved in Multimillion-Dollar Fraudulent Scheme

Derren Geiger (CRD #: 5613118), a broker formerly registered with American Global Wealth Management, is the subject of a pending SEC complaint, according to his BrokerCheck record, accessed on July 9, 2022. Read on if you have questions about Derren Geiger’s conduct as a broker.

SEC Complaint

On May 27, 2022, the Securities and Exchange Commission filed a civil complaint against Derren Geiger and Cornerstone Acquisition and Management Company alleging their involvement in a fraudulent scheme involving soliciting and retaining investors for two private funds.

These allegations reportedly occurred from April 2011 through at least November 2021, and Cornerstone allegedly earned more than $3.3 million in asset-based management fees from only one of these funds.

The SEC alleges that Derren Geiger, as CEO, portfolio manager, and chief compliance officer of Cornerstone, made false and misleading statements and engaged in other deceptive acts. Derren Geiger and the other defendants allegedly created and/or disseminated materially false and misleading statements, including mischaracterizing the nature of the private funds and their associated risks, to solicit and retain investors for one of the funds.

The SEC further alleges that the defendants committed additional deception to evade detection by investors and regulators, including stating that Derren Geiger was Cornerstone’s sole owner in reports filed with the SEC.

Lastly, the SEC alleges that the defendants failed to maintain the compliance policies/procedures and accurate books and records required by the Advisers Act.

This civil action is currently pending.

Section 17(a) of the Securities Act of 1933

Section 17(a) of the Securities Act of 1933 prohibits the use of fraudulent schemes and devices in relation to the interstate purchase or sale of securities. It also bans the use of false or misleading statements, or the omission of information entirely, to enact fraud.

Section 10(b) of the Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934, similar to the above, bans fraudulent, manipulative, and deceptive behavior. Rule 10b-5 specifically prohibits the misrepresentation or omission of material facts.

Background Information

Derren Geiger has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 3 – National Commodity Futures Examination
  • Series 7 – General Securities Representative Examination
  • Series 24 – General Securities Principal Examination

He previously worked for American Global Wealth Management (CRD#:7388) and Constans Crescent Global (CRD#:134848).

Kurta Law Can Help

If you worked with Derren Geiger and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. 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.