Investors Bring Arbitration Claims Against Coastal Equities For Alternative Investments
Luke Michael Johnson of Scottsdale Arizona a stockbroker formerly registered with Coastal Equities Inc. and investment adviser representative of Coastal Investment Advisers is identified in a customer initiated investment related arbitration claim where the customer sought $100,000.00 in damages supported by accusations that the customer received unsuitable alternative investment recommendations from Johnson in 2016 in regard to direct participation programs and limited partnership interests during the time that Johnson was associated with Coastal Equities. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-02044 (June 30, 2020).
FINRA Public Disclosure confirms that Johnson has been referenced in sixteen additional customer initiated investment related disputes involving allegations of his violative conduct while he was employed by Coastal Equities and Coastal Investment Advisors. Johnson is the subject of a customer initiated investment related arbitration claim in which the customer requested $1,900,000.00 in damages based upon accusations of unsuitable advice by Johnson on direct investments. FINRA Arbitration No. 20-00042 (Jan. 6, 2020). The claim alleges that due diligence was not adequately performed on securities prior to Johnson recommending them to the customer between June of 2017 and June of 2018.
On February 26, 2020, another customer filed an investment related complaint involving Johnson’s conduct where the customer sought more than $5,000.00 in damages supported by allegations that misrepresentations had been made by the stockbroker regarding alternative investments that he sold through Coastal Equities. The complaint also alleges that Johnson’s recommended investments were in no way suitable for the customer. The stockbroker is also referenced in a customer initiated investment related arbitration claim in which the customer requested between $500,000.00 and $1,000,000.00 in damages supported by accusations that between August of 2016 and October of 2017, the Coastal Equities customer was placed into inappropriate real estate securities and direct investments that resulted in losses for the customer. FINRA Arbitration No. 20-00847 (Mar. 17, 2020).
On April 9, 2020, an additional customer filed an investment related arbitration claim involving Johnson’s activities where the customer sought $2,329,900.00 in damages based upon allegations of Johnson’s failure to perform due diligence before advising the customer on real estate securities, DPPs or LPs. FINRA Arbitration No. 20-00593. According to the claim, the customer was invested in unsuitable securities between March of 2014 and December of 2017 because of Johnson. The stockbroker is also identified in a customer initiated investment related arbitration claim in which the customer requested as much as $250,000.00 in damages founded on accusations of unsuitable sales effected by Johnson in the Coastal Equities customer’s account from 2016 to 2019. FINRA Arbitration No. 20-01271 (Apr. 22, 2020).
On May 20, 2020, another customer filed an investment related arbitration claim involving Johnson’s conduct where the customer sought as much as $100,000.00 in damages supported by allegations of Johnson’s poor advice on real estate investment trusts during the period that Johnson was employed by Coastal Equities. FINRA Arbitration No. 20-01607.
FINRA Public Disclosure reveals that Johnson has been terminated for misconduct three times. He was terminated by Northwestern Mutual Investment Services based upon accusations of him signing a supervisor’s name on variable life insurance applications to falsely relay that a suitability review had been conducted. The stockbroker was subsequently discharged by Coastal Equities and Coastal Investment Advisors founded on allegations of Johnson’s disregard of company policy in regard to customer complaints. The stockbroker allegedly neglected to make his supervisors know about customers’ complaints. The securities broker dealer also indicated that Johnson misrepresented customers’ financials on documents.