Capital Financial Accused Of Bad Alternative Investment Recommendations
Lloyd Mark Johnston of Spokane Washington a stockbroker formerly employed by Capital Financial Services is referenced in a customer initiated investment related complaint on October 22, 2018 in which the customer requested damages estimated to exceed $5,000.00 supported by allegations that the customer had been sold an unsuitable alternative investment while Johnston was associated with Capital Financial Services Inc.
This is not the first time that Johnston has been subject of a customer dispute. Particularly, a customer initiated investment related arbitration claim involving Johnston’s conduct was settled for $35,000.00 in damages founded on accusations that the customer had been sold a real estate security, oil and gas product, and direct participation program or limited partnership interest that failed to be appropriate for the customer given the customer’s tolerance for risks, objectives for investing or investment circumstances. FINRA Arbitration No. 18-01755 (Mar. 1, 2019).
FINRA Public Disclosure additionally confirms that Johnston has thrice been sanctioned by securities regulators for misconduct. Specifically, Johnston was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that the stockbroker neglected to provide information to FINRA after a formal inquiry was made by the regulator. Case No. 2018057318201 (Sept. 4, 2018).
Johnston’s lack of cooperation resulted in him receiving a Notice of Suspension letter from FINRA on May 31, 2018 and a Suspension from Association letter from FINRA on June 25, 2018. Apparently, Johnston was provided three months from the Notice of Suspension date to furnish the information sought by the regulator or otherwise request that his suspension be lifted. Johnston did not respond to FINRA by the September 3, 2018 deadline. The stockbroker was automatically barred the following day.
Johnston has also been fined $5,000.00 and barred as a stockbroker in the State of Maryland according to Maryland Division of Securities Order containing allegations of Johnston having failed to report more than $1,000,000.00 in outstanding liens or judgements that had been entered against him; and for violating the terms of his conditional registration in Maryland. Case No. 2018-0471 (Nov. 8, 2018).
Johnston was discharged by Capital Financial Services Inc. on April 19, 2018 founded on allegations that he failed to make required regulatory disclosures.