David Geake: $965K GWG L Bond Complaint Against Chicago Advisor

Chicago financial advisor David Geake (CRD# 3088891) has received an investor complaint six-figure damages relating to the sale of GWG L bonds. Financial Industry Regulatory Authority records show that Mr. Geake is a broker and investment advisor American Trust Investment Services, and that earlier investment complaints against him have reached six-figure settlements.

The most recent investor complaint against Mr. Geake was filed in April 2022. It alleges that he breached his fiduciary duty, violated FINRA rules and Illinois securities laws, committed fraud, acted negligently, and breached contract in relation to investments in GWG L bonds. The pending complaint alleges damages of $965,793. 

As the Wall Street Journal reported in April 2022, GWG Holdings was a Dallas, Texas-based alternative asset manager. The company was reportedly known for a product it termed L bonds, “which pooled money from bond investors to purchase life-insurance policies on the secondary market.” The payouts issued when policyholders died were reportedly used to repay the debts. GWG  raised approximately $1.6 billion “mostly from individual investors,” per the Wall Street Journal, and later went into Chapter 11 bankruptcy. According to a report by The DI Wire, GWG indicated in its bankruptcy filings that it was being investigated by the Securities and Exchange Commission, which was looking into “how bonds were sold by brokers.” More information on GWG L bonds, and whether they were unsuitable investments for conservative investors, is available here. 

An earlier investor complaint, filed in January 2021, alleges that as a representative of Madison Avenue Securities, Mr. Geake recommended unsuitable alternative investments. The pending complaint alleges damages between $500,000 and $1,000,000.

A complaint filed in June 2021 alleged that while at Madison Avenue Securities, Mr. Geake recommended unsuitable alternative investments, including investments in Hospitality Investors Trust. In November 2021 the complaint reached a settlement of $450,000.

A similar investor complaint, filed in April 2021, also alleged that Mr. Geake recommended unsuitable investments. The complaint reached a settlement of $40,000. A May 2021 complaint alleged that Mr. Geake recommended unsuitable investments in private placements and a unit investment trust. In April 2022 the complaint reached a settlement of $110,000. A complaint filed in June 2020 alleged supervisory failures in relation to investments in MrktServ. In March 2021 the complaint reached a settlement of $560,000.

According to the Financial Industry Regulatory Authority, David Geake holds 23 years of securities industry experience. Based in Chicago, he has been a broker and investment advisor with American Trust Investment Services since 2018 and 2019, respectively. He is also registered with the firm’s office in Northbrook, Illinois. His past registrations include Ausdal Financial Partners, Madison Avenue Securities, and American General Securities Incorporated. He is licensed in California, Georgia, Illinois, Indiana, Maryland, Michigan, Minnesota, Nevada, New York, and Puerto Rico. (Information current as of June 25, 2022.)

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