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Luke Johnson formerly with Coastal Equities Has 17 Customer Complaints For Alleged Broker Misconduct In the Past 3 Years

Who is Luke Johnson formerly with Coastal Equities?

Luke Johnson, President of Legend Capital Group and Prime Capital Investment Advisors in Scottsdale, Arizona, is a subject of one of our many securities industry sales abuse investigations. He was last registered in the securities brokerage industry as an associate member of Coastal Equities. In December 2019, Mr. Johnson was terminated for allegedly failing to forward a customer complaint and inconsistently stating a customer’s liquid net worth on client disclosure documents.

Luke Johnson & Coastal Equities Alleged Misconduct

Incredibly in the last three year period in the securities industry, Mr. Johnson became the subject of seventeen (17) customer complaints that we know about. Three of those customer complaints were settled in favor of investors. There are currently thirteen (13) pending customer complaints filed against Mr. Johnson’s former employer, Coastal Equities, for his alleged misconduct. The other complaint was denied by his former employer and it appears no further action was taken by the customer.

Allegations Against Luke Johnson

A sample of the allegations made in the FINRA reported arbitration claim settlements, and pending complaints are as follows:

  • Customer alleges that registered representative recommended unsuitable securities purchased in approximately 2015.
  • Client’s attorney alleges that the financial advisors recommendations of alternative investments were unsuitable.
  • Client alleges unsuitable investment recommendations and breach of fiduciary duty.
  • Client alleges that two alternative product recommendations made in 2016 were unsuitable.
  • Client alleges that an alternative product recommendations made in 2017 was unsuitable.
  • Claimants allege that between March, 2014 and December, 2017 Coastal Equities failed to conduct adequate due diligence on certain investments and through the Coastal Equities representative, Luke Johnson, made unsuitable investment recommendations to Claimants.
  • Customers allege that the management of the portfolio was negligent and that certain investments made between January 2015 and present were unsuitable.
  • Claimants allege that in 2017-2018, the firm made misrepresentations and omissions of fact to claimants in soliciting the sale of certain private placement investments.  Claimants also allege that the firm was negligent in not rejecting the product for sale during its due diligence process.

Luke Johnson Red Flags & Your Rights As An Investor

Of course, Mr. Johnson did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by seventeen (17) customers are red flags which should put all former customers of Mr. Johnson at Coastal Equities on alert to review carefully the activity and performance of their accounts and question whether Mr. Johnson has engaged in stockbroker misconduct that caused their investment losses. The large number of customer complaints also raises questions about Coastal Equities’ supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor.

File A Claim To Recover Your Investment Losses At Coastal Equities

If you have questions about Coastal Equities and/or Mr. Johnson and the management or performance of your account contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.

Author Photo

Robert Wayne Pearce

Robert Wayne Pearce of The Law Offices of Robert Wayne Pearce, P.A. has been a trial attorney for more than 40 years and has helped recover over $160 million dollars for his clients. During that time, he developed a well-respected and highly accomplished legal career representing investors and brokers in disputes with one another and the government and industry regulators. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case.

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