Haselkorn & Thibaut (InvestmentFraudLawyers.com) continue to scrutinize the activities of David Geake from American Trust Investment Services, Inc. (CRD# 3088891). This comes after 26 clients filed complaints alleging collectively millions of dollars in damages related to the Chicago-based broker’s potentially inappropriate sale of various speculative and alternative investments, including:
- Cottonwood Communities Class A
- GWG L Bonds
- Hospitality Investors Trust
- IncomeShield10
- mCloud technologies
- MrktServ, Inc.
If you’ve experienced financial losses in association with David Richard Geake, Haselkorn & Thibaut encourage you to reach out at 1-800-856-3352 to explore your avenues for recouping your losses. The firm only collects legal fees if they successfully recover finances on your behalf.
The 26 Customer Complaints against David Richard Geake:
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The Financial Industry Regulatory Authority (FINRA) BrokerCheck records indicate that Geake has 28 public disclosures, 26 of which are client complaints. These complaints accuse Geake of misconduct resulting in more than $7 million in damages, citing unsuitable and misleading investment advice, overconcentration, breach of fiduciary duty, and lack of supervision.
Recently, Haselkorn & Thibaut reported Geake’s permanent prohibition from acting as a broker by FINRA following allegations of his involvement in a private securities transaction involving two elderly investors and a $2.5 million loan collateral for a startup company.
Geake was also previously allowed to step down from Ausdal Financial Partners, Inc., where he served between 2016 and 2018 in Northbrook, IL. This resignation followed claims that he took part in an unreported private security transaction. His most recent registration was with American Trust Investment Services in Chicago, IL.
The $500k Recovery Claim by Haselkorn & Thibaut Against David Geake:
Haselkorn & Thibaut recently disclosed a FINRA arbitration claim (no. 23-00934) seeking as much as $500,000 in loss recovery against American Trust Investment Services and David Richard Geake. This case was related to the overconcentration of clients’ portfolios in risky, speculative investments and unauthorized purchases.
Geake made unauthorized purchases of two American Equity, IncomeShield10 investments across two customer accounts. In another client’s account, he purchased mCloud Technologies stock without the client’s knowledge until they detected substantial losses in their account statements.
In one of his clients’ IRA accounts, Geake acquired target funds, closed-end funds, and a speculative investment known as Cottonwood Communities Class A and mCloud Technologies. When the client tried to shift his account to JP Morgan, the firm refused to hold his Cottonwood Communities investment due to its high risk and illiquidity. If withdrawn before six years, the client was also not informed about a $5,000 surrender charge tied to the Cottonwood Communities investment.
Both American Trust Investment Services and David Richard Geake are accused of downplaying the risks tied to their recommended investments, making material misrepresentations and omissions, and conducting unauthorized transactions. The client was oblivious to the investments’ speculative nature and significant risks.
How Can Investors Recoup Their Losses?
Sadly, brokers or investment advisors sometimes understate the risks and liquidity issues linked with alternative investments, including Non-traded REITs, Business Development Companies (BDCs), Direct Participation Partnerships (DPPs) & Limited Partnerships (LP Interests), and Oil & Gas investments.
It’s the duty of brokerage firms and their registered brokers/investment advisors to fully explain these risks before recommending such alternative financial products to their clients, given that they’re often high-risk and come with steep expenses and fees.
Should your broker or financial advisor have suggested unsuitable alternative investments inconsistent with your investment profile or overlooked your risk tolerance in giving investment advice, you may be entitled to financial recovery via FINRA arbitration.
If you’re a client of David Richard Geake or American Trust Investment Services who have suffered investment losses, please reach out to Haselkorn & Thibaut at 1-800-856-3352 for a free, confidential consultation to explore your legal options. The firm operates under a “No Recovery, No Fee” policy, ensuring they only collect attorney’s fees if they manage to secure a financial recovery for you.
About Haselkorn & Thibaut:
With over half a century of experience, Haselkorn & Thibaut stands as a renowned law firm specializing in investment fraud. With a success rate of 98%, they have a proven track record in securing financial recoveries for investors. With offices in Florida, New York, North Carolina, Arizona, and Texas, Haselkorn & Thibaut is devoted to assisting investors in recouping their losses.
