Prime Capital Investment Advisors & Luke Johnson Accused of Unsuitability

Scottsdale, Arizona Investment Advisor Was Fired By Broker-Dealer Coastal Securities

Luke Michael Johnson, currently Managing Director for Prime Capital Investment Advisors in Paradise Valley in the Scottsdale area, is named in over a dozen pending disputes by investors seeking damages for losses they allegedly suffered while working with him. Johnson was also the president of Legend Capital Group and a former Capital Securities broker where he worked for seven years.

There are 19 disclosures on his BrokerCheck record. The majority of these are investor claims, with a number of them requesting damages that are in the six- or seven-figures.

If you suffered losses while working with ex-Coastal Securities registered representative Luke Johnson, contact Shepherd Smith Edwards and Kantas (SSEK Law Firm) today and request a free consultation to explore your legal options.

Pending Customer Disputes Against the Prime Capital Investment Advisors Director

According to BrokerCheck, Johnson has worked in the industry for 15 years. Disclosures of note on his record include:

June 2020: In this alternative investment fraud case for recommendations made in 2016, the claimant is seeking $100K in damages.
August 2020: Unsuitability is alleged in this alternative investment claim. The former customer is also seeking $100K.
April 2020: The investor is alleging unsuitable securities sales from 2016 to 2019 and is requesting $150K in damages.
April 2020: The claimant is seeking $2.3M in damages and accusing Coastal Securities of not doing enough due diligence on investment recommendations made by Johnson.
March 2020: The claimant in this $500K investor case is also alleging unsuitable sales.
February 2020: This is another unsuitability investment fraud claim.
January 2020: This investor is accusing Coastal Securities of improper due diligence and is requesting $1.9M in damages.
January 2019: Another alternative investment fraud case.
November 2019: Coastal Equities fired Luke Johnson after he allegedly didn’t forward a customer complaint to his supervisor in a timely fashion. He is accused of inconsistently stating the liquid net worth of one client in disclosure documents.
October 2019: This is an unsuitability case where the customer is seeking nearly $798K.
September 2019: This is another unsuitable investment recommendation claim.
June 2019: This private placement case seeks $750K in damages.
September 2018: Alleging unsuitable investment sales, the customer received a $250K settlement.
June 2018: This unsuitable investment claim was settled for $140K.
February 2005: Luke Johnson was allowed to resign from Northwestern Mutual Investment Services after signing a supervisor’s name on variable annuity application forms.

Although his BrokerCheck record doesn’t specify which investments Johnson may have unsuitably recommended to customers, there are investors that have accused him of selling GPB private placements. These investments were issued by GPB Capital Holdings, an alternative investment firm that is accused of running an over $1.8B Ponzi scam. Thousands of investors have lost money in the GPB Funds.

Luke Johnson founded Legend Capital Group and he was a senior wealth advisor with that firm from 2006 to 2020. Other firms that he used to be registered with include Summit Brokerage Services, Carillon Investments, and Robert W. Baird & Co.

Unsuitable Investment Fraud Lawyers

SSEK Law Firm represents investors who have lost money due to unsuitable investment recommendations, including those involving private placements such as those issued by GPB Capital Holdings.

Should we decide to work together, our skilled securities fraud attorneys will be there with you every step of the way in building a solid FINRA arbitration claim to try to recover your losses. Contact us today.