Coastal Equities Sued For Fraudulent Alternative Investments

Luke Michael Johnson of Scottsdale Arizona a stockbroker formerly employed by Coastal Equities Inc. is the subject of a customer initiated investment related arbitration claim in which the customer requested $509,000.00 in damages based upon allegations that investment recommendations made by Johnson between June of 2017 and June of 2018 failed to be suitable for the customer and that inadequate due diligence was conducted on direct participation program interests and limited partnerships interests when those investments were recommended for the Coastal Equities customer. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-00042 (Jan. 6, 2020).

FINRA Public Disclosure reveals that Johnson is referenced in ten more customer initiated investment related disputes containing allegations of his wrongdoing while associated with Coastal Equities and Coastal Investment Advisors Inc. On June 14, 2019, a customer initiated investment related arbitration claim involving Johnson’s conduct was settled for $140,000.00 in damages based upon allegations of bad investment advice by Johnson as it pertained to direct investments and real estate securities sold to the customer while Johnson was associated with Coastal Equities. FINRA Arbitration No. 18-02266.

Johnson is also referenced in a customer initiated investment related arbitration claim which was settled on August 7, 2019 for $225,000.00 in damages supported by allegations of unsuitable alternative investments held in the customer’s Coastal Investment Advisors portfolio. FINRA Arbitration No. 18-04125.

On November 1, 2019, another customer filed an investment related arbitration claim in reference to Johnson’s conduct where the customer sought unspecified compensatory damages based upon accusations of bad advice by Johnson as it pertained to alternative investments purchased by the customer in 2017. FINRA Arbitration No. 19-03242.

Johnson is also referenced in a customer initiated investment related complaint on November 20, 2019 where the customer sought more than $5,000.00 in damages. According to the complaint, a fiduciary duty which was owed to the customer had been breached by Johnson. Misrepresentations were allegedly made about direct investments. The complaint also alleged that the Coastal Investment Advisors customer was poorly advised by Johnson resulting in undue investment losses.

On December 6, 2019, another customer filed an investment related arbitration claim where the customer sought unspecified damages founded on accusations of unsuitable direct participation program interests or limited partnership interests being sold by Johnson through Coastal Equities. FINRA Arbitration No. 19-03612.

Also, on December 23, 2019, a customer filed an investment related complaint involving Johnson’s conduct in which the customer requested $363,568.00 in damages based upon allegations including breach of fiduciary duty and unsuitable investment advice. On November 13, 2019, Johnson was discharged by Coastal Equities and Coastal Investment Advisors based upon allegations of Johnson failing to comply with his duty to forward customer complaints to management and by misrepresenting information about customers on account documentation.