Luke M. Johnson Facing Allegations of Misconduct at Coastal Equities, Inc.

Financial Industry Regulatory Authority (FINRA) BrokerCheck reveals disclosures about securities broker Luke M. Johnson (also known as Luke Johnson) [CRD: 3257008, Scottsdale, Arizona]. Johnson worked for Coastal Equities, Inc. from April 2012 to December 2019. Recent disclosures reveal concerns about Johnson’s conduct, including allegations of unsuitable recommendations, misrepresentation, and regulatory violations.

Coastal Equities Client Files Arbitration Claim Alleging Unsuitable Recommendations

On July 12, 2024, a client of Coastal Equities, Inc. filed a dispute alleging Johnson failed to conduct adequate due diligence before recommending and selling securities. This matter is currently pending resolution.

Coastal Equities Client Files Arbitration Claim for Unsuitable Recommendations

On October 31, 2023, another client alleged unsuitable recommendations, claiming damages of $225,000. This case is also pending resolution.

Coastal Equities Settles Client Claim of Unsuitable Investments

Previously, on June 9, 2023, clients accused Johnson of making unsuitable investments. Coastal Equities, Inc. settled the case for $60,000, although the initial damages requested totaled $117,922.90.

Coastal Equities Pays $1.4 Million Settlement for Unsuitable Investment Claims

Another notable settlement occurred on April 17, 2023, where Johnson’s recommendations allegedly led to unsuitable investments, resulting in a settlement of $1,400,000 after clients sought damages of $190,000.

Arizona Corporation Commission Files Regulatory Complaint

On August 11, 2023, the Arizona Corporation Commission’s Securities Division filed a case against Johnson, alleging violations of A.R.S. §44-1991 and A.R.S. §44-1999. Johnson consented to sanctions, including a $20,000 fine, $229,241 in restitution, and a cease-and-desist order.

FINRA Files Complaint Against Luke M. Johnson for Unsuitable Recommendations

Earlier, on July 12, 2023, FINRA initiated a complaint alleging Johnson recommended unsuitable purchases exceeding $2.35 million in illiquid alternative investments. The recommendations purportedly over-concentrated clients’ portfolios in high-risk securities, often falsifying their financial profiles to circumvent firm policies. Johnson earned $132,900 in commissions from these activities. Without admitting or denying the allegations, Johnson accepted FINRA’s sanctions, which included an 18-month suspension (effective February 5, 2024, to August 4, 2025), a $15,000 fine, and disgorgement of $21,797.30.

Coastal Equities Terminates Luke M. Johnson for Policy Violations

On November 13, 2019, Coastal Equities, Inc. terminated Johnson’s employment, citing allegations of falsifying client financial profiles and failing to report a client’s complaint. This marked the end of his tenure at the firm, which began in April 2012.

Contact Soreide Law About Luke M. Johnson Today

If so, reach out to Soreide Law Group online or at (888) 760-6552 to speak with a securities attorney. Soreide Law Group takes cases on a contingency basis, advances all costs upfront, and helps investors nationwide recover losses from sales practice violations, though outcomes cannot be guaranteed. Johnson and the firms he worked for deny accusations of sales practice violations.