National investment loss lawyers KlaymanToskes continues investigating David Richard Geake of (CRD# 3088891) American Trust Investment Services, Inc. following the filing of 26 customer complaints alleging millions in collective investor damages against the Chicago, Illinois-based broker in connection with the unsuitable sale of alternative and speculative investments, including the following:
Investors that suffered losses with David Richard Geake are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
According to FINRA BrokerCheck, David Richard Geake has 28 public disclosures, 26 of which are customer complaints. Geake’s customers have alleged a collective total of over $7 million in damages due to his alleged misconduct, including unsuitable and misrepresented investment recommendations, overconcentration, breach of fiduciary duty, and failure to supervise.
KlaymanToskes recently reported that Geake was permanently barred from acting as a stockbroker in all capacities by FINRA, due to allegations that he participated in a private securities transaction by soliciting two elderly investors to pledge securities as collateral to guarantee a $2.5 million loan for a startup company.
Geake was also previously permitted to resign from Ausdal Financial Partners, Inc., where he worked from 2016 to 2018 in Northbrook, IL, following allegations that he engaged in an unreported private security transaction. David Geake was most recently registered with American Trust Investment Services in Chicago, IL.
KlaymanToskes previously reported that the firm filed a FINRA arbitration claim (no. 23-00934) seeking up to $500,000 in investment loss recovery against American Trust Investment Services and David Richard Geake, in connection with his overconcentration of his customer’s portfolio in unsuitable, speculative investments, and unauthorized purchases.
In two of the customer’s accounts, Geake purchased two American Equity, IncomeShield 10 investments. In another account of the customer, Geake purchased mCloud Technologies stock. The mCloud Technologies stock purchases made by Geake were unauthorized by the customer, who was unaware of the purchase until he noticed significant losses on his account statements.
In one of the customer’s IRA accounts, Geake purchased target funds, closed-end funds,and an Alternative Investment called Cottonwood Communities Class A and mCloud Technologies. When the customer attempted to move his account to JP Morgan, the new firm would not take custody of his Cottonwood Communities Alternative Investment due to its speculative risk and lack of liquidity. The customer was also not made aware that the Cottonwood Communities investment has a surrender charge of $5,000 if surrendered before six years.
American Trust Investment Services and David Richard Geake misrepresented the risks associated with the investments recommended to the customer, made material misrepresentations and omissions, and engaged in unauthorized purchases. The customer was unaware that the investments were speculative and incorporated significant risks.
Unfortunately, some brokers/investment advisors may misrepresent the risks and liquidity problems associated with alternative investments, including Non-traded REITs, Business Development Companies (BDCs), Direct Participation Partnerships (DPPs) & Limited Partnerships (LP Interests), and Oil & Gas investments.
Brokerage firms and their registered brokers/investment advisors have a responsibility to disclose and fully explain these risks before recommending any alternative financial products to customers, as they are often high-risk, have limited liquidity, and carry high expenses and fees.
If your stockbroker or financial advisor recommended unsuitable alternative investments based on your investment profile or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
Customers of David Richard Geake and/or American Trust Investment Services who suffered investment losses are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free and confidential consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com