American Trust Investment Services Review – Regulatory Sanctions and Broker Misconduct
The White Law Group reviews the regulatory history of American Trust Investment Services, Inc. (CRD #3001 / SEC#: 8-14394), a brokerage firm headquartered in Whiting, Indiana. According to FINRA BrokerCheck, the firm has faced multiple regulatory actions brought by FINRA and state securities regulators, including sanctions for supervisory failures, Reg BI violations, and unregistered securities sales.
April 22, 2025 – FINRA AWC (Reg BI & Supervision Failures)
FINRA issued an AWC censuring American Trust Investment Services, imposing a $100,000 fine, ordering $166,000 restitution to customers, and requiring the firm to implement compliance undertakings.
According to FINRA, the firm failed to reasonably supervise representatives’ recommendations of speculative corporate bonds that later defaulted and went bankrupt. Investors included retirees, seniors, and a nonprofit entity. FINRA also found the firm willfully violated Regulation Best Interest (Reg BI) by failing to establish and maintain written policies and procedures reasonably designed to achieve compliance.
Additionally, FINRA determined the firm:
- Sold unregistered securities without an exemption, violating Section 5 of the Securities Act.
- Lacked adequate supervisory systems related to private placements, outside business activities, and Reg BI compliance.
- Failed to conduct timely and thorough branch inspections, even after prior SEC warnings.
Broker Misconduct and Disciplinary Actions
Several former brokers affiliated with American Trust Investment Services have also faced disciplinary actions:
- David Geake (CRD#: 3088891) – Former broker, barred by FINRA. He has 56 disclosures, including customer disputes alleging unsuitable investments, breach of fiduciary duty, and supervisory failures.
- Scot Barringer (CRD#: 1385168) – Former broker, now an investment adviser. In May 2025, FINRA suspended him for 3 months and fined him $5,000 for unsuitable GWG L Bond sales. He has 11 disclosures.
Investor Claims and Supervisory Failures
Broker-dealers like American Trust Investment Services are required to maintain supervisory systems to protect investors. When firms fail in these duties, investors may be exposed to unsuitable investment recommendations, Reg BI violations, and fraudulent sales of unregistered securities. These failures can result in significant financial harm, particularly to seniors and retirees.
Why Hire a FINRA Arbitration Lawyer
If you have suffered investment losses with American Trust Investment Services or one of its representatives, you may be able to pursue recovery through FINRA arbitration.
The White Law Group has represented hundreds of investors in claims against brokerage firms, including cases involving unsuitable investments, supervisory failures, and Reg BI violations. FINRA arbitration is often a quicker and more cost-effective alternative to traditional litigation and may help investors recover losses.
Contact Us
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
If you have concerns about investments with American Trust Investment Services, call 888-637-5510 for a free consultation with a securities attorney.
Visit us at www.whitesecuritieslaw.com.
Frequently Asked Questions (FAQs) – American Trust Investment Services
How many regulatory actions has American Trust Investment Services faced?
The firm has been cited in at least three significant actions by FINRA and state regulators, including a major 2025 AWC and two 2020 consent orders.
Can investors recover losses from American Trust Investment Services?
Yes. Investors may be able to recover damages through FINRA arbitration claims if losses were caused by unsuitable recommendations or the firm’s supervisory failures.
