February 1, 2021 Comments Off on Lawsuit Filed Against Madison Avenue Securities alleges Unsuitable Investment Recommendations Blog, Securities Fraud

Lawsuit Filed Against Madison Avenue Securities alleges Unsuitable Investment Recommendations

Lawsuit Filed Against Madison Avenue Securities alleges Unsuitable Investment Recommendations, featured by top securities fraud attorneys, the White Law Group

Lawsuit Filed Against Madison Avenue Securities alleges Unsuitable Investment Recommendations

The White Law Group announces the filing of a FINRA arbitration claim against Madison Avenue Securities, LLC involving  high-risk private placement investments.  

The White Law Group has submitted to FINRA Dispute Resolution on behalf of two residents of Northbrook, IL alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. 

 The claim further alleges that Madison Avenue Securities unsuitably invested its clients in the following private placements, non-traded REITs and high risk alternative investments: 

NorthStar Healthcare Income Inc.
Hospitality Investors Trust, Inc.
Benefit Street Partners Realty Trust
NorthStar REIT II
FS Global CR Opportunity Fund
FS Investment Corp. II 
HMS Income Fund
Global Net Lease, Inc.
Corporate Capital Trust, Inc.
Cottonwood Residential, Inc.
Gemini V
ICON Fund 14
Crossroad (Now BDCA)
NorthStar Realty Income
Behringer Harvard Opportunity Fund II
FS Investment Corp

 The claim seeks damages between $500,000 and $1,000,000. 

 Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.  It is alleged that Madison Avenue Securities failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors. 

 It is further alleged that David Geake was the financial advisor of record.  According to his FINRA broker report, David Geake reportedly has one employment separation, and 8 customer complaints. Allegations include unsuitable investments, overconcentration, and misrepresentation, among others. 

 Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that David Geake violated FINRA rules and Madison Avenue Securities failed to adequately supervise him, the firm can be held responsible for any resulting losses in a FINRA arbitration claim.

 “We believe there are many more investors who have suffered losses in high risk private placement investments who just don’t realize they have recourse, or may be unaware of any wrongdoing,” said D. Daxton White, managing partner of The White Law Group. 

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional.  It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court. 

 For more information on the claim filed by The White Law Group, please contact the firm at 1-888-637-5510. 

 The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois. 

 For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.

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