DAVID RICHARD GEAKE & AMERICAN TRUST Lawsuit

Soreide Law Group has filed a FINRA arbitration on behalf of their client (Claimant) against:

AMERICAN TRUST INVESTMENT SERVICES, INC. (Respondent)

The Claimant, a divorced mother of three in her 60s, is living in Illinois. On or about 2015, the Claimant attended a presentation of formerly registered representative, DAVID RICHARD GEAKE.  Geake transferred to AMERICAN TRUST on or about 2018 and transferred the Claimant’s account with him. According to the lawsuit, while at AMERICAN TRUST, Geake allegedly began recommending speculative and highly unsuitable investments to the Claimant, many of which benefited the firm by commissions at the expense of the Claimant’s retirement savings.  The lawsuit states that the Claimant was looking for moderate growth and allegedly explained this to Geake at the onset of their relationship.  The Claimant lost approximately $100,000 in highly speculative positions. Examples of the inappropriate recommendations include but are not limited to Mcloud Technologies (-$50k), DarioHealth Corp., GWG holdings (-100%/-$14k), hydro farm holdings, and ishares small caps to name a few.  The Claimant has lost approximately $100,000 with DAVID RICHARD GEAKE who has now lost his securities licenses and is barred from the industry. Geake is not named in this lawsuit.

According to the lawsuit, AMERICAN TRUST and their employees/agents actions have caused the Claimant out of pocket damages of approximately $100,000.00. The lawsuit alleges, negligence, breach of fiduciary duty, and negligent supervision.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, DAVID RICHARD GEAKE, had been in the securities industry, both as a financial advisor and as a broker, for 24 years and was listed with 5 firms.  He has 29 Disclosures on his FINRA CRD report, 27 are “Customer Disputes.” FINRA conducted a review of the CRD’s of all registered representatives, only .41% had been the subject of 3 or more customer complaints. In other words Geake’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints.

On July 10, 2023, FINRA permanently barred DAVID RICHARD GEAKE following these allegations, “Without admitting or denying the findings, Geake consented to the sanction and to the entry of findings that he participated in a private securities transaction by soliciting elderly investors, a husband and wife, to pledge approximately $15 million of securities as collateral to guarantee a $2.5 million loan from a bank on behalf of a startup company without providing written notice to his member firm. The findings stated that Geake personally invested $100,000 in the company and was also a member of its Board of Directors. Geake assured the couple that their risk of investment loss was minimal. Geake structured the transaction and facilitated the paperwork on behalf of the couple. The pledge of securities as collateral for the loan was an offer of a security and the couple received shares of the company's common stock in exchange for their guarantee of the loan. By soliciting this pledge of securities and facilitating the transaction, Geake participated in a private securities transaction. Subsequently, the company fully defaulted on the bank loan and closed its business and the bank called for the loan to be paid in full. As a result, the couple were required to repay the entire $2.5 million bank loan with interest. Although neither of the investors were firm customers, the firm's policies prohibited its registered representatives, including Geake, from engaging in any private securities transaction without prior express written permission. The findings also stated that Geake incorrectly attested to the firm on multiple annual compliance questionnaires that he had not participated in any private securities transactions.”

DAVID RICHARD GEAKE was registered with AMERICAN TRUST INVESTMENT SERVICES, INC. in Chicago, Illinois, from 09/14/2018 to 05/30/2023.

If you or an elderly loved one have suffered investment losses due to the actions or recommendations of AMERICAN TRUST INVESTMENT SERVICES, INC. and/or their former registered representative, DAVID RICHARD GEAKE, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis, no fee to you if no recovery.