Failure to conduct due diligence on alternative investments

$50,000.00

Violation of IL Securities Act of 1953; Breach of Fiduciary Duty; Negligent Hiring and Retention; Violation of Reg BI; FINRA Rules 2010, 2120, 3110; Failure to Supervise; Breach of Contract

$167,797.00

Breach of Fiduciary Duty; Suitability; Misrepresentation; FINRA Rules 2010, IM-2310-2 & 2020; Failure to Supervise; Breach of Contract

$200,000.00

Breach of Fiduciary Duty and Negligence, Investments not appropriate for client.

$75,000.00

Client alleges breach of written contract; breach of fiduciary duty; failure to supervise; negligence and gross negligence; violation of Finra rules; violation of federal securities laws; violation of best interest obligations.

$100,000.00

Breach of Fiduciary Duty, Failure to Supervise, Breach of Contract

$325,000.00

Violations of Federal Securities Laws; Violation of IL Consumer Fraud and Deceptive Business Practices Act; Violation of IL Securities Law; Breach of Contract; Negligence and Gross Negligence.

$100,000.00

Breach of Fiduciary Duty and Negligence

$35,000.00

Negligence; Breach of Fiduciary Duty; Breach of Contract; Unjust Enrichment; Consumer Fraud, Violation of the IL Securities Law. Mulholland and Patterson purchased GWG L Bonds in 2017 and 2018 while David Geake was registered with Ausdal Financial Partners, Inc.

$111,000.00

Unsuitable recommendations of alternative investments

$35,000.00

$13,000.00

Illinois

While registered as an investment advisor in the state of Illinois, David Richard Geake entered into a Letter of Acceptance, Waiver and Consent (“AWC”) with FINRA a self-regulatory organization registered under Federal Act. Pursuant to AWC No. 2021072679901, on July 23, 2023, Geake violated Rules 3280 and Rule 2010, based upon the following facts. Prior to association with Ausdal Partners Geake raised funds through sale of common stock, invested $10,000 in and was on the Board of Directors of a startup comp

Violations of Federal Securities Laws, Violation of IL Consumer Fraud and Deceptive Business Practices Act, Violation of IL Securities Law, Breach of Contract, Common Law Fraud, Breach of Fiduciary Duty, Negligence and Gross Negligence, related to the purchase of a GWG L bond in June 2018.

$32,000.00

Negligence; Misrepresentation and Omissions of Material Facts; Breach of Fiduciary Duty; Failure to Supervise.

$410,000.00

Negligence; Breach of fiduciary duty; Negligent Supervision

$100,000.00

$24,999.00

Claimants allege unsuitable recommendations of alternative investments, primarily in NorthStar Healthcare REIT. The dates vary for the numerous claimants listed.

$345,000.00

Unsuitable investments, due diligence, failure to supervise

$1,500,000.00

$5,000.00

Unsuitable recommendations of alternative investments.

$1,000,000.00

$150,000.00

Unsuitable investments, failure to supervise, Due diligence

$90,000.00

$16,000.00

Unsuitable investments, due diligence, failure to supervise

$35,000.00

Violation of federal and state securities laws, breach of fiduciary duty, suitability, failure to supervise

$80,000.00

$8,000.00

Unsuitable recommendations of alternative investments and Market Serv

$500,000.00

$20,000.00

Selling away, Over concentration in alternative investments, failure to act in the 'best interest' of the claimant, breach of fiduciary duty, breach of contract, failure to supervise, negligence, violation of the federal securities laws.

$500,000.00

Unauthorized trading, unsuitable investments

$50,001.00

Unsuitable investments, failure to act in the 'best interest' of claimants, misrepresentation and omission, breach of fiduciary duty, breach of contract, failure to supervise, violation of the federal securities laws

$165,000.00

Suitability, Failure to supervise, negligence, breach of contract, breach of fiduciary duty, misrepresentation, violation of Regulation Best Interest

$100,000.00

Demand for settlement, related to purchase of GWG L Bond in January 2017, alleging unsuitable investment, lack of due diligence and failure to supervise.

$50,000.00

$7,000.00

Unsuitable investments, Failure to act in the 'best interest' of claimants, Breach of fiduciary duty, Breach of contract, Failure to supervise, Violation of federal securities law.

$50,000.00

$21,750.00

FINRA

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.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All capacities

Indefinite

7/10/2023

Violation of securities laws, breach of fiduciary duty, failure to supervise, unjust enrichment.

$42,000.00

Failure to Supervise, Breach of Fiduciary Duty, Breach of Contract, Violation of Securities Law

$25,000.00

$9,500.00

Unsuitable recommendations of alternative investments.

$698,000.00

$300,000.00

Due Diligence, Breach of Fiduciary Duty, Misrepresentation, Breach of Contract

$39,000.00

$14,999.00

Unsuitable recommendations of alternative investments.

$60,000.00

Due Diligence, Breach of Fiduciary Duty, Misrepresentation, Breach of Contract

$76,000.00

$9,000.00

Lack of Due Diligence, Breach of Fiduciary Duty, Misrepresentation and Breach of Contract

$75,000.00

Suitability, Due Diligence, Breach of Contract, and Failure to Supervise

$100,000.00

$36,929.41

Suitability, Due Diligence, Breach of Contract, and Failure to Supervise

$50,000.00

$16,874.87

Suitability, misrepresentation

$25,000.00

$14,000.00

Unsuitable recommendations, Failure to supervise, due diligence, and breach of contract.

$530,000.00

$22,500.00

Unsuitable investments, breach of contract, failure to supervise, breach of fiduciary duty

$130,000.00

$65,000.00

Claimants allege unsuitable recommendations of alternative investments

$500,000.00

$22,500.00

Claimants allege unsuitable recommendations of multiple alternative investments, including Hospitality Investors Trust starting in 2013. There are a total of 13 claimants listed with three different advisers who are named as subjects of this investment related arbitration since they may have been the adviser on record for one or more claimants listed on this arbitration.

$750,000.00

$450,000.00

Unsuitable investments

$110,000.00

Unsuitable investments, breach of fiduciary duties, lack of supervision

$40,000.00

Suitability

$500,000.00

$100,000.00

Failure to supervise. 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.

$2,800,000.00

$560,000.00

Claimants allege failure to conduct Due Diligence on several points, unsuitable recommendation, overconcentration, misrpresentations and omissions in violation of FINRA regulations in the sale of Alternative Investments.

$100,000.00

$20,000.00

Client alleges unsuitable recommendations in illiquid investments in 2014 while a representative of Madison Securities, Inc. prior to the rep joining American Trust Investment Services, Inc.. The client also alleges that funds were deposited to the joint account and not invested, which occurred with the client was with Ausdal, also prior to joining American Trust Investment Services.

$70,000.00

Clients' complained cash in joint account was not invested in the market. There is no allegation or evidence of theft or misappropriation of funds.

Ausdal Financial Partners, Inc.

Permitted to Resign

Engaging in an unreported private security transaction.

Disagreement over the interpretation of whether a disclosed OBA included a private security transaction.

Customer alleges unsuitable investments related to recommendation to move out of 401(k) to pay off debt, and invest in income generating products based on a financial plan she established with her rep in 2016. Transactions occurred in November 2016.

$53,000.00

Even though the client's financial plan was ahead of schedule, she felt that the performance of her accounts should have been even higher due to the overall stock market performance. Ironically, she didn't want any of her investments with me in the stock market. Yet the missing out of the performance of the stock market is the basis for her complaint.

[customer] purchased multiple products through David Geake in 2015 while he was registered with Madison Avenue Securities. The client alleges the products were not suitable for her, and alleges issues with risk tolerance, suitability, concentration and liquidity.

$200,000.00

Alleged activity occurred prior to Mr. Geake joining Ausdal Financial Partners. However, the customer subsequently transferred her accounts to Ausdal. Customer alleges securities fraud, misrepresentation, tax losses and breach of fiduciary duty based on the conduct of former Madison Avenue Securities brokers [Redacted], David Geake, and [Redacted]. Alleged activity occurred in or around June 2015.

$41,984.00

$40,000.00

POA ALLEGES THE REIT HER MOTHER PURCHASED WAS UNSUITABLE.

$40,000.00

ON 10/18/2010 THE FIRM RECEIVED A LETTER FROM THE CUSTOMERS' ATTORNEY ALLEGING OVER CONCENTRATION IN REITS AND A DEMAND TO RETURN THE TOTAL AMOUNT INVESTED IN THE REITS TO THE CUSTOMERS IN EXCHANGE FOR THE REITS. ON 03/16/2011 CLAIMANTS FILED AN ARBITRATION ALLEGING MISREPRESENTATION AND SUITABILITY ISSUES WITH THE PURCHASE OF THREE REITS.

$885,279.83

$140,000.00

ON 05/10/2012 CLAIMANTS AND PLANTIFFS ENGAGED IN MEDIATION AND SETTLED THE MATTER FOR $140,000. THE SETTLEMENT WAS BETWEEN THE FIRM AND THE CLAIMANTS. THE SETTLEMENT AGREEMENT REPRESENTS A COMPROMISE OF A DISPUTED CLAIM AND THE PAYMENT IS NOT AN ADMISSION OF LIABILITY ON THE PART OF THE FIRM. THE RR DID NOT CONTRIBUTE FINANCIALLY TO THE SETTLEMENT.