Updated on: February 7, 2023
Investment Losses David R. Geake? Contact KlaymanToskes
National investment fraud lawyers KlaymanToskes is investigating David R. Geake (CRD# 3088891) of American Trust Investment Services, Inc. following 21 investor complaints alleging over $7 million in collective investor damages filed against the Chicago, Illinois-based broker in connection with the sale of GWG L Bonds.
KlaymanToskes is currently representing customers of David Geake in an effort to recover their investment losses. If you suffered significant losses with David R. Geake and/or American Trust Investment Services, contact securities attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com to discuss your recovery options at no cost.
David R. Geake: Over $7 million in Investor Complaints Filed
According to FINRA BrokerCheck, David Richard Geake (CRD# 3088891) has 22 public disclosures including 21 investor complaints that allege a total of over $7 million in investor damages. 9 complaints have been settled in favor of the investors, 8 complaints are pending, and 4 were either closed or denied.
Geake was permitted to resign from Ausdal Financial Partners, Inc., where he worked from 2016 to 2018 in Northbrook, IL, following allegations of engaging in an unreported private security transaction.
- Filed on January 17th, 2023: Investor alleges Due Diligence, Breach of Fiduciary Duty, Misrepresentation, Breach of Contract.
(Pending – Alleged Damages $39,000)
- Filed on December 29th, 2022: Investor alleges Due Diligence, Breach of Fiduciary Duty, Misrepresentation, Breach of Contract.
(Pending – Alleged Damages $76,000)
- Filed on November 28th, 2022: Investor alleges Lack of Due Diligence, Breach of Fiduciary Duty, Misrepresentation and Breach of Contract.
(Pending – Alleged Damages $75,000)
- Filed on October 14th, 2022: Investor alleges Suitability, Failure to conduct Due Diligence, Breach of Contract, and Failure to Supervise.
(Pending – Alleged Damages $100,000)
- Filed on October 14th, 2022: Investor alleges Suitability, Failure to conduct Due Diligence, Breach of Contract, and Failure to Supervise.
(Pending – Alleged Damages $50,000)
- Filed on August 31st, 2022: Investor alleged Suitability, misrepresentation. (Settled in favor of the investor – $14,000)
- Filed on August 15th, 2022: Investor alleges Unsuitable Investments, Breach of contract, failure to supervise, and breach of fiduciary duty.
(Pending – Alleged Damages $130,000)
- Filed on August 15th, 2022: Investor alleges Unsuitable recommendations, Failure to supervise, Insufficient Due Diligence and breach of contract.
(Pending – Alleged Damages $530,000)
- Filed on April 4th, 2022: Investor alleges breach of fiduciary duty, violation of IL Securities Law, FINRA Rules 2010, 2120, 2311, fraud, negligence, breach of contract.
(Pending – Alleged Damages $965,793)
- Filed on September 20th, 2021: Investor alleged unsuitable recommendations of multiple alternative investments, including Hospitality Investors Trust starting in 2013.
(Settled in favor of the investor – $450,000.00)
- Filed on May 13th, 2021: Investor alleged unsuitable investments.
(Settled in favor of the investor – $110,000)
- Filed on May 13th, 2021: Investor alleged unsuitable investments, breach of fiduciary duties, lack of supervision.
(Settled in favor of the investor – $40,000)
- Filed on March 24th, 2021: Investor alleged suitability.
(Settled in favor of the investor – $100,000)
- Filed on August 26th, 2020: Investor alleged 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.
(Settled in favor of the investor – $560,000)
- Filed on April 17th, 2020: Investor alleged 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.
(Settled in favor of the investor – $20,000)
- Filed on October 30th, 2019: Investor alleged unsuitable recommendations in illiquid investments in 2014 while a representative of Madison Securities, Inc. prior to the rep joining American Trust Investment Services, Inc. The investor also alleges that funds were deposited to the joint account and not invested, which occurred when the client was with Ausdal, also prior to joining American Trust Investment Services.
- Filed on March 6th, 2018: Investor alleged unsuitable investments related to recommendation to move out of 401(k) to pay off debt, and invest in income generating products based on a financial plan she established with her rep in 2016.
- Filed on July 31st, 2017: Investor alleged they purchased multiple products through David Geake in 2015 while he was registered with Madison Avenue Securities. The investor alleges the products were not suitable for her, and alleges issues with risk tolerance, suitability, concentration and liquidity.
- Filed on June 12th, 2017: Investor 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].
(Settled in favor of the investor – $40,000)
- Filed on September 17th, 2012: Investor alleged the REIT her mother purchased was unsuitable.
- Filed on March 23rd, 2011: Investor alleged 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.
(Settled in favor of the investor – $140,000)
KlaymanToskes’ Experience with GWG L Bond Investment Losses
In August, 2022, KlaymanToskes filed a related FINRA arbitration claim (Case No. 22-01932) against Craig Lee Carson (CRD# 41892), on behalf of an 82-year-old widow seeking to recover over $220,000 in damages sustained in GWG Holdings, Inc. (OTCMKTS: GWGHQ) L Bonds.
While the customer and her husband maintained low risk-tolerance and sought out safe, fixed income investments for retirement, they were solicited to invest in high-risk and illiquid L Bonds by Carson and Intervest International.
To learn more about this case read our recent blog post: “Intervest International Broker Craig Lee Carson Resigns Following Allegations of Over $10 Million in Damages to Customers”
Investments in High-Risk GWG L Bonds
GWG L bonds were marketed as safe and low-risk investments that were instead unrated, illiquid, high risk, and potentially speculative. In a related SEC investigation of former Landolt Securities broker Anthony B. Liddle (CRD# 5478479), who has since been barred from the securities industry and is being sued by his previous employer, the SEC filed a civil action where it stated that GWG disclosed on the second page of its 2020 Prospectus, “L Bonds are only suitable for persons with substantial financial resources and with no need for liquidity in this investment.”
The following is a timeline summary for GWG L bonds:
- From April 2021 to November 5th, 2021, GWG temporarily ceased its sale of L Bonds (“the GWG 2021 Suspension”) due to its inability to file its required 2020 Form 10-K.
- On November 5th, 2021 in its annual Form 10-K filing, GWG “publicly disclosed that its auditor had issued a going concern qualification to their audited financial statements for 2020 due to serious concerns about the viability of the company.”
- On January 10th, 2022 GWG suspended further sales of L Bonds due to its “inability to make interest payments on the L Bonds” (“the GWG 2022 Suspension”).
- GWG filed for Chapter 11 bankruptcy on April 20th, 2022 and its common stock (OTCMKTS: GWGHQ) was delisted from the Nasdaq Stock Market on May 17, 2022.
How Can I Recover My Losses?
KlaymanToskes is currently representing investors who sustained significant losses in GWG Holdings, Inc. (OTCMKTS: GWGHQ) L Bonds and is investigating the misappropriation of investor funds.
Investors are encouraged to learn more about GWG L Bond Investment Recovery Options and contact investment loss attorney Lawrence L. Klayman to discuss legal options at (888) 997-9956 or lklayman@klaymantoskes.com. Consultations are free and every case is taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Investors can also learn more about GWG L Bond investment losses in our related post:
“GWG L Bonds Commonly Asked Questions”
About KlaymanToskes
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.
Contact
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
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