Karen Geiger: Former Ohio Advisor Has $1 Million GWG L Bond Complaint

Cape Securities financial advisor Karen Geiger (CRD# 1456604) recently received an investor complaint alleging more than $1 million in damages connected to a GWG L bonds investment. Financial Industry Regulatory Authority records show that she is registered as a broker in McDonough, Georgia, having formerly been registered with Wall Street Securities in Akron, Ohio and Advanced Strategies in Huron, Ohio.

Ms. Geiger’s BrokerCheck report discloses one investor complaint. Filed in August 2022, it alleges due diligence failures, misrepresentations and omissions of material facts, unsuitable investment recommendations, fraudulent concealment, breach of contract, common law fraud, breach of fiduciary duty, negligence and gross negligence, supervisory failures, and violations of Ohio securities laws connected to investments in GWG L bonds. The pending complaint alleges damages of $1.07 million.

A second disclosure on Ms. Geiger’s BrokerCheck report concerns a 2013 FINRA sanction. According to the disclosure, the regulator found that she recommended and sold unsuitable, illiquid, and high-risk alternative investments in GWG Holdings to a retired married couple with a moderate risk tolerance and limited to moderate investment experience. FINRA ordered her to pay a fine of $15,000 and suspended her from associating with any FINRA member in any capacity for 30 business days. 

According to the Financial Industry Regulatory Authority, Karen Geiger holds 36 years of securities industry experience. Based in McDonough, Georgia, she has been a broker with Cape Securities since 2017. Her past registrations include Wall Street Strategies (Akron, Ohio; 2013-2017), Prosperity Capital Advisors (Akron, Ohio; 2012-2013), Regal Securities (Akron, Ohio; 2009-2012), USA Advanced Planners (Akron, Ohio; 2006-2008), H&R Block Financial Advisors (Fairlawn, Ohio; 2003-2006), Edward Jones (St. Louis, Missouri; 1999-2003), McDonald Investments, Key Investments, FirstMerit Securities, Vestax Securities Corporation, and Travelers Equity Sales. Her credentials include the passage of four securities qualifying exams: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Investment Adviser Law Examination, or Series 65. She is licensed as a broker in Ohio and Florida. (Information current as of October 5, 2022.)

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