FINRA Bars Advisor David Geake after 25 Complaints
The Financial Industry Regulatory Authority (FINRA), the broker-dealer regulator, has reportedly barred financial advisor David Geake after alleged broker misconduct.
According to FINRA, in November 2016, Geake purportedly solicited two elderly investors to pledge securities as collateral to guarantee a $2.5 million loan for a startup company. Geake allegedly participated in the transaction without providing written notice to Ausdal Financial Partners. Geake’s conduct reportedly violated FINRA Rules 3280 and 2010.
FINRA Rule 3280 requires that prior to participating in any private securities transaction, or selling away, an associated person shall provide written notice to his or her firm “describing in detail the proposed transaction and the person’s proposed role.” “Selling away” is the practice of soliciting a customer to purchase securities not held, offered or approved by the employing brokerage firm.
Before Geake was reportedly affiliated with Ausdal Financial Partners, he allegedly raised funds through the sale of common stock for a startup company developing technology to sell automotive parts online. Geake had reportedly also personally invested $100,000 in the company and was allegedly a member of its Board of Directors. In November 2016, after registering with Ausdal Financial Partners, Geake allegedly solicited an elderly husband and wife to pledge approximately $1.5 million of securities as collateral to guarantee a $2.5 million loan from a bank on behalf of the company. Geake purportedly assured the couple that their risk of investment loss was minimal. In 2018, 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.
According to his broker report, a customer settled a complaint against Geake in 2020 for failure to supervise for allegations that “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.” The damage amount requested was $2.8 million, and the case reportedly settled for $560,000, according to FINRA.
In March 2023, we reported that CFP Board permanently revoked Geake’s right to use the CFP® certification marks after he reportedly failed to file an Answer to CFP Board’s Complaint within the required time frame.
FINRA BrokerCheck Profile – David Geake
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
BrokerCheck provides investors with detailed information about the professional history, qualifications, and regulatory actions of brokers and brokerage firms. Investors can use the tool to verify whether a broker or brokerage firm is registered with FINRA, as well as to review their employment history, licensing status, and any regulatory actions or complaints filed against them.
David Geake reportedly has 25 customers complaints on his broker CRD. Allegations include unsuitable recommendation, overconcentration, misrepresentations and omissions…in the sale of Alternative Investments,” among others.
According to his FINRA Broker Report, David Geake was affiliated with the following firms during his career:
09/14/2018 – 05/30/2023, AMERICAN TRUST INVESTMENT SERVICES, INC. (CRD#:3001), CHICAGO, IL,
B, 02/29/2016 – 09/17/2018, AUSDAL FINANCIAL PARTNERS, INC. (CRD#:7995), Northbrook, IL
B, 01/03/2007 – 05/18/2015, MADISON AVENUE SECURITIES, LLC (CRD#:23224), NORTHBROOK, IL
FINRA’s Supervision Rule
FINRA has several rules in place to regulate broker-dealers, including the FINRA Rule 3110 Supervision rule. This rule requires broker-dealer firms to establish and maintain a system to supervise the activities of their associated persons (e.g., brokers) to ensure that they comply with securities laws and regulations.
The White Law Group is investigating potential securities claims involving David Geake and the liability his employers may have for failure to supervise him. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you are concerned about your investments with David Geake, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states including Illinois. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
For more information on The White Law Group, and its representation of investors, please visit WhiteSecuritiesLaw.com.Tags: broker investigation, David Geake, FINRA bar, mrkt serv, unsuitable investments Last modified: July 11, 2023