FINRA Files Complaint Against Luke Johnson

Soreide Law Group is investigating possible investor claims against securities broker Luke Michael Johnson [CRD: 3257008, Scottsdale, Arizona]. Notably, FINRA filed an enforcement or civil action against the securities broker, who worked for Coastal Equities Inc., regarding suitability and falsification of information. Here is a brief summary of FINRA’s allegations against Johnson.

FINRA Charges Johnson With Unsuitable Recommendations

Particularly, on July 12, 2023, FINRA initiated Case: FINRA Complaint No. 2019061213402 against Luke Johnson. Notably, FINRA alleged that Johnson made unsuitable recommendations and falsified client information.

Unsuitable Recommendations

Johnson allegedly advised clients to purchase over $2.35 million in illiquid alternative investments. These recommendations supposedly did not align with the clients' investment profiles. Factors such as the clients' net worth, liquid net worth, annual income, investment objectives, and risk tolerance were reportedly not taken into consideration. For older clients, even their ages seemed to have been overlooked. Supposedly, Johnson's suggestions led to a high concentration of clients' liquid assets in high-risk, illiquid securities. From these recommendations, Johnson is said to have profited significantly, earning commissions in excess of $132,900.

Misrepresentation Of Client Details

Supposedly, Johnson, or individuals acting under his direction, might have manipulated client details. Specifically, the net worth and liquid net worth reported on the member firm's client account information forms and the clients' alternative investment documents allegedly did not match the actual figures. Furthermore, Johnson or his assistants are alleged to have altered the reported liquidity requirements, risk tolerance, earnings, and possibly the status of some clients as accredited investors on forms and documents.

Bypassing Firm Policies

Moreover, while Johnson was affiliated with the firm, it had a clear policy that capped client investments in alternative investments to 35% of their liquid net worth. However, Johnson is accused of inflating his clients' net worth and liquid net worth figures. This alleged manipulation seems to have been done to evade the firm's investment concentration policy and elude supervisory checks.

Coastal Equities Inc. Investor Accused Luke Johnson Of Unsuitable Trading

Notably, on June 8, 2023, a Coastal Equities Inc. client filed FINRA Arbitration: 23-01700 about Luke Johnson. Namely, the client alleged that Johnson engaged in unsuitable trading. Because of this, the client allegedly sustained damages on direct investments. Therefore, the client requested $117,922.90 in compensation from Coastal Equities Inc. or Johnson. Evidently, this arbitration is pending a resolution.

Johnson Discloses Unsuitable Trading Allegations By Coastal Equities Inc. Client

Particularly, a client of Coastal Equities Inc. contested Luke Johnson’s sales practices by filing FINRA Arbitration: 23-01020 on April 17, 2023. Allegedly, Johnson engaged in unsuitable trading. It appears that Johnson caused the client to sustain damages on direct investments. Therefore, the client seeks compensatory relief from Coastal Equities Inc. or Johnson in the amount of $190,000 in this ongoing matter.

Coastal Investment Advisors Inc. Investor Accused Luke Johnson Of Unsuitable Recommendations

Also, a Coastal Investment Advisors Inc. client filed FINRA Arbitration: 20-03756 about Luke Johnson. Namely, the client alleged that Johnson made unsuitable recommendations. Because of this, the client allegedly sustained damages on direct investments and real estate securities. Therefore, on February 28, 2023, Coastal Investment Advisors Inc. settled this matter by paying the client $360,000 in damages.

Johnson Discloses Unsuitable Trading Allegations By Coastal Investment Advisors Inc. Client

Additionally, a client of Coastal Investment Advisors Inc. contested Luke Johnson’s sales practices by filing FINRA Arbitration: 21-01270. Allegedly, Johnson engaged in unsuitable trading. It appears that Johnson caused the client to sustain damages on direct investments and real estate securities. Therefore, Coastal Investment Advisors Inc. opted to settle the matter on October 17, 2022, by compensating the client in the amount of $275,000.

Coastal Equities Inc. Investor Accused Luke Johnson Of Unsuitable Recommendations

Specifically, a Coastal Equities Inc. client filed FINRA Arbitration: 21-01546 about Luke Johnson. Namely, the client alleged that Johnson made unsuitable recommendations. Because of this, the client allegedly sustained damages on direct investments and real estate securities. Therefore, on August 22, 2022, Coastal Equities Inc. settled this matter by paying the client $100,425 in damages.

Johnson Discloses Unsuitable Trading Allegations By Coastal Equities Inc. Client

Also, a client of Coastal Equities Inc. contested Luke Johnson’s sales practices by filing FINRA Arbitration: 20-03956. Allegedly, Johnson engaged in unsuitable trading. It appears that Johnson caused the client to sustain damages on real estate securities. Therefore, Coastal Equities Inc. opted to settle the matter on May 9, 2022, by compensating the client in the amount of $22,500.

Employment Information

Luke Johnson worked for Coastal Equities Inc. as a securities broker from April 2012 to December 2019.

Damages Resulting From Coastal Equities Inc. Securities Broker Luke Johnson?

Did you sustain damages through Luke Johnson? If so, contact Soreide Law Group online or at (888) 760-6552 and talk with a securities lawyer regarding a possible recovery of your investment losses. Soreide Law Group, who has helped recover money for investors throughout the United States, represents clients on a contingency fee basis and advances all costs. Johnson and brokerage firms Johnson worked for deny any and all allegations of sales practice violations.