January 2020-Scottsdale, AZ
We are investigating former Coastal Equities Inc. broker Luke Michael Johnson on behalf of an Arizona resident who alleges that she was sold an unsuitable investment in GPB Capital Holdings. GPB Capital Holdings is currently under investigation by the Securities & Exchange Commission and the Financial Industry Regulatory Authority (FINRA).
GPB Capital Holdings‘ affiliates include:
- GPB Holdings LP
- GPB Holdings I
- GPB Holdings II
- GPB Automotive Portfolio LP
- GPB Waste Management LP
- Armada Waste Management
- GPB NYC Development LP
GPB Holdings II and GPB Automotive have both seen substantial declines in value over recent months.
According to publicly available records Luke M. Johnson, discloses 6 pending customer disputes, 3 prior customer disputes and 3 terminations from employment.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In FINRA Case 18-4125 a customer of Coastal Equities/ Coastal Investment Advisors alleged that Johnson made unsuitable recommendations of alternative investments and limited partnerships. That case was settled for $225,000.
In FINRA Case 18-2266 a customer of Coastal Equities alleged that Johnson recommended unsuitable real estate securities causing losses. That case was settled for $140,000.
In pending FINRA Case 19-1548, a customer of Coastal Equities is seeking damages of $750,000 and alleges that Johnson made misrepresentations and omissions in soliciting the sale of private placement investments.
In five other pending cases, the customers of Coastal Equities are seeking unspecified damages for mismanagement of their portfolios.
Luke Johnson is not currently registered with any broker dealer. He was employed by Coastal Equities from 4/2012 until 12/2019. He does business under the name of Legend Capital Group in Scottsdale, AZ.
Johnson was discharged by Coastal Equities in 11/2019. Coastal makes the following allegation on Johnson’s FINRA record: “Registered Representative failed to follow firm policy to timely forward a customer complaint to his superior and compliance, and by inconsistently stating a customer’s liquid net worth on client disclosure documents.”
If you have an account handled by Luke M. Johnson that you believe has been mishandled, contact us to learn how you may be able to recover damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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