Derek Johnson Involved in Two Suitability Disputes

Derek Johnson (CRD #: 2922680), a broker and investment advisor registered with Morgan Stanley, is facing an unsuitability dispute, according to his BrokerCheck record, accessed on September 4, 2025. Keep reading if you have questions regarding his alleged conduct. 

Investor Disputes 

On June 30, 2025, an investor alleged that Derek Johnson recommended unsuitable equity investments. The investor is seeking $250,000. 

On December 10, 2021, an investor alleged that Derek Johnson recommended an unsuitable investment strategy. This dispute was settled for $750,000. 

What is an Unsuitable Investment? 

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. 

Rule 2111 also requires brokers to consider the following investor characteristics: 

• Age
• Risk tolerance
• Time horizon (i.e., how long the investor plans to hold the investment)
• Investing experience
• Tax status
• Financial goals

Investments that do not fit the criteria established by the investor profile may be unsuitable. Investors who rely on brokers for recommendations may recover their losses by pursuing FINRA arbitration.

Background Information

Derek Johnson has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

Derek Johnson is a registered broker in 14 states. He is also a registered investment advisor in Texas and California.

Besides Morgan Stanley, Derek Johnson has also worked with the following firms:

• J.P. Morgan Securities (CRD#: 79)
• Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)
• Citigroup Global Markets (CRD#:7059)

Kurta Law Can Help

If you have worked with Derek Johnson and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.