Luke Michael Johnson of Scottsdale, Arizona, a stockbroker formerly registered with Coastal Equities Inc., is the subject of a customer initiated investment related FINRA securities arbitration claim where the customer requested $200,000.00 in damages supported by accusations of Johnson made unsuitable recommendations to the customer concerning real estate securities and direct investments, including direct participation program interests and limited partnership interests, during the time that Johnson was associated with Coastal Equities. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-03756 (November 9, 2020).
According to the claim, Coastal Equities and Coastal Investment Advisors failed to supervise, and it did not reasonably handle due diligence on the alternative investments that Johnson recommended between 2013 and 2017.
FINRA Public Disclosure shows that Johnson has been identified in twenty two additional customer initiated investment related disputes regarding allegations of his wrongdoing during the period that he was associated with securities broker dealers, including Coastal Equities. On May 3, 2021, a customer initiated investment related arbitration claim regarding Johnson’s activities was settled for $9,329.19 in damages founded on accusations of bad recommendations concerning alternative investments when Johnson was registered with Coastal Equities. FINRA Arbitration No. 20-02044. The claim alleges that the customer sustained damages on two direct investments.
Johnson is also referenced in a customer initiated investment related arbitration claim in which the customer sought $200,000.00 in damages based upon allegations of unsuitable recommendations by Johnson as it pertained to alternative investments. FINRA Arbitration No. 20-03756. The claim also alleges that the securities broker dealer did not perform due diligence reasonably before the customer was placed into the investments.
On December 3, 2020, another customer filed an investment related arbitration claim concerning Johnson’s conduct where the customer requested $76,500.00 in damages founded on accusations of Johnson’s poor investment advice regarding REITs while Johnson was employed by Coastal Equities. FINRA Arbitration No. 20-03956 (December 3, 2020).
Johnson is also identified in a customer initiated investment related arbitration claim in which the customer sought $1,375,000.00 in damages supported by allegations of unsuitable recommendations by Johnson concerning real estate securities, DPPs, and LPs, during the time that he was associated with Coastal Equities. FINRA Arbitration No. 21-01270 (June 11, 2021).
On June 21, 2021, another customer filed an investment related arbitration claim involving Johnson’s activities where the customer requested $500,000.00 in damages based upon accusations that between 2014 and 2017, unsuitable recommendations by Johnson caused the customer to experience losses on real estate securities and direct investments. FINRA Arbitration No. 21-01546.
Johnson is also the subject of a customer initiated investment related arbitration claim which was resolved for $25,000.00 in damages on March 1, 2022, founded on allegations of misrepresentation and unsuitable advice by Johnson in regard to DPPs and LPs. FINRA Arbitration No. 21-02096.
FINRA Public Disclosure shows that Johnson was discharged by Coastal Equities and Coastal Investment Advisers on November 13, 2019. According to the firms, Johnson did not disclose that a customer complained. The securities broker dealer also contends that Johnson put inconsistent information on documents relating to a customer’s financial information.
