The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Luke M. Johnson. According to his publicly available FINRA BrokerCheck report, Luke M. Johnson has been the subject of multiple customer disputes.

Luke M. Johnson is an Arizona based securities broker. He has worked in the securities industry for fifteen years. During his career, he has been registered with five different securities firms.

His Registrations

  • Robert W. Baird & Co. (2000-2002)
  • Northwestern Mutual Investment Services (2000-2005)
  • Carillon Investments (2005-2006)
  • Summit Brokerage Services (2006-2009)
  • Coastal Equities (2012-Present)

The Allegations

  • In June 2018, a customer alleged that Luke M. Johnson recommended unsuitable securities. This case was settled for $140,000 in damages.
  • In September 2018, an attorney, on behalf of a customer, alleged that Luke M. Johnson recommended unsuitable alternative investments to his client. This case was settled for $225,000 in damages.
  • In June 2019, customers alleged that Luke M. Johnson made material misrepresentations and omissions of fact concerning private placements. This case is presently pending. The customers are seeking $750,000 in damages.
  • In August 2019, customers alleged that Luke M. Johnson negligently managed their portfolio and recommended unsuitable investments. This case is currently pending. The customers are seeking an undisclosed amount in damages.
  • In September 2019, customers alleged that Luke M. Johnson recommended an unsuitable product. This case is currently pending. The customers are seeking an undisclosed amount in damages.

What Does This Mean?

The term alternative investments is used to describe privately traded securities not sold on public securities exchanges. Due to their private nature, these alternative products are very poorly regulated. Many less than scrupulous securities brokers take advantage of this fact and will pitch these securities to unsuspecting investors as safe and consistently lucrative. The truth is that these securities are incredibly risky and illiquid investments that are highly unsuitable for investors. Despite this, many securities brokers recommend them to investors because of the excessively high commissions they receive when doing so. Broker commissions for these products can be as high as ten percent of an investor’s principal investment. When a principal investment is lowered that substantially, it becomes almost impossible for an investor to see a profit under anything besides a booming market.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Luke M. Johnson, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.