Luke Johnson Embroiled in Disputes Alleging Over $2 Million in Losses
Luke Johnson (CRD #: 3257008), an investment adviser registered with Prime Capital Investment Advisors, is embroiled in multiple investor disputes, according to his BrokerCheck record, accessed on August 12, 2021. He has also registered as a broker, most recently with Coastal Equities.
Luke Johnson has an unusually high number of disclosures on his BrokerCheck. He has five pending investor disputes, 16 settled disputes, and three employment separations.
On March 10, 2022, an investor alleged that Luke Johnson recommended an unsuitable investment. The investor is seeking $345,000; the dispute is pending.
There are many similar allegations on his record:
- On December 10, 2021, an investor filed allegations that Luke Johnson recommended unsuitable investments resulting in a $300,000 loss.
- On June 21, 2021, an investor alleged that Luke Johnson recommended an unsuitable investment. The investor is seeking $500,000; the dispute is pending.
- There is another dispute from earlier the same month. On June 11, 2021, investors alleged that Johnson made unsuitable recommendations. The investor is seeking $1,375,000; the dispute is pending.
- On November 9, 2020, investors alleged that Luke Johnson recommended unsuitable investments. The investor is seeking $200,000; the dispute is pending.
FINRA Rule 2111 defines suitable investments as securities that fit an investor's profile. An investor's profile includes information about their risk tolerance, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
- Investments can be unsuitable because they are high risk and likely to lose money.
- Securities may also be unsuitable because they are illiquid, meaning that they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
- Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.
- These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.
On November 13, 2019, Coastal Investment Advisors fired Luke Johnson following allegations that he failed to forward an investor complaint in a timely manner. He also allegedly inconsistently stated a customer’s liquid net worth on client disclosure documents.
Settled Investor Disputes
There are 16 settled investor disputes on Luke Johnson’s record that allege he recommended unsuitable investments. These disputes were collectively resolved for $2,275,271.28. To see the complete list of Johnson’s disclosures, review his BrokerCheck here.
Johnson has passed the following exams:
- Series 66 Uniform Combined State Law Examination
- Series 63 Uniform Securities Agent State Law Examination
- Securities Industry Essentials Examination
- Series 7 General Securities Representative Examination
- Series 6 Investment Company Products/ Variable Contracts Representative Examination
- Series 26 Investment Company Products /Variable Contracts Principal Examination
Johnson has worked with the following firms:
- Coastal Equities (CRD #: 23769)
- Summit Brokerage Services (CRD #: 34643)
- Carillon Investments (CRD #: 14646)
- Robert W Baird & Co. (CRD #: 8158)
- Northwestern Mutual Investment Services (CRD #: 2881)
Kurta Law Can Help
If you worked with Luke Johnson and you have concerns about your investments, contact Kurta Law today. Call 212-658-1502 or email email@example.com.
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.