Now a registered investment advisor with Prime Capital Investment Advisors, LLC, Luke Michael Johnson was once registered as a broker with several securities firms, according to records gathered by the Financial Industry Regulatory Authority (FINRA)’s BrokerCheck.
In this capacity, 20 customer disputes (14 pending and six final) have been filed against Johnson, BrokerCheck reports. He also experienced three terminations.
Settled Consumer Disputes
While Johnson worked for Coastal Equities, Inc./Coastal Investments Advisors, Inc., a client accused the broker of recommending unsuitable investments and of breach of fiduciary duty, according to BrokerCheck. The client alleged that their damages amounted to $363,568. The complaint was received on December 23, 2019 and was settled on April 7, 2020 in the amount of $22,000.
Earlier that same year, FINRA Office of Dispute Resolution handled the arbitration of another client complaint against Johnson, BrokerCheck reports. In this instance, the client accused Johnson of negligent management of their portfolio and of unsuitable sales—an allegation that Johnson denied. Rather, the broker insisted that the investors had represented themselves as sophisticated and accredited investors and that the investments he recommended suited this stature. The client alleged damages totalling $797,865.50. The matter was settled in November 2020 in the amount of $390,000.
BrokerCheck further reports that in June of 2019, claimants stepped forward to accuse Coastal Equities, Inc./Coastal Investments Advisors of mispresenting and omitting facts while soliciting the sale of specific private placement investments. The claimants also stated that Johnson’s employer was negligent when it failed to reject the product that was for sale during the due diligence process. Johnson was not specifically named in this complaint. The clients claimed damages in the amount of $750,000, and they received a settlement in the amount of $150,000. Johnson denied the claimant’s accusations and asserted that the client did not suffer a loss.
Going further back in Johnson’s career, but at a time when he still worked for Coastal Equities, Inc., a client’s attorney filed a complaint alleging that Johnson had made unsuitable alternative investment recommendations. The lawyer also stated that within his client’s advisory portfolio, three securities represented unsuitable investments. Johnson denied the investments’ unsuitability, claiming that his client never expressed a need for liquidity. The lawyer for Johnson’s client did not allege damages, but in December 2018, the matter entered FINRA arbitration. In August of 2019, the matter settled for $225,000, including an individual contribution amount of $70,000.
In a fifth customer dispute, BrokerCheck reports that process was served on Johnson on June 28, 2018 after a customer accused the Johnson of recommending unsuitable securities investments in 2015. Johnson argued that the claim was without merit and that the investment recommendation made sense given the client’s investment objectives, financial status, and risk tolerance. The matter was ultimately settled as a business decision, in the amount of $140,000, with an individual contribution f $70,000.
Other Unhappy Clients Still Await the Outcomes of Their Complaints
A sixth customer dispute, filed in 2017, was closed, according to BrokerCheck. This leaves 14 additional, pending customer disputes against Johnson. The alleged damages in these cases range from $76,000 to over two million dollars.
What Our Clients Say
Below are some of the emails and letters that our clients have sent us.
At a time in our life when we were most vulnerable we lost control of our finances. We fell victim to a broker that took huge commissions and did not disclose that we were not able to access our money. Peter Mougey and his wonderful staff worked with us to make us whole again and got our money released. I cannot say enough about their work ethic, professionalism, and kindness during this stressful time for us. We had a 100% positive conclusion to our case and we strongly recommend Peter and the firm. We can now sleep at night! Fred & Pat H.
My husband and I were very pleased with the work that Peter and his team provided. He was very knowledgeable of the circumstances of our case and kept us informed throughout the process. He is extremely qualified and worked diligently on our behalf. We are positive that this case would not have been resolved in our favor had it not been for Peter's expertise and his passion. He definitely cares about his clients and we sincerely appreciate his efforts. Rachel C.
FRS is a governmental body. FRS retained the services of Peter Mougey of the LP law firm in a multimillion dollar lawsuit involving extremely complex issues. Mr. Mougey quickly mastered the issues and gave advice that was vital in bringing about a successful resolution. Two of the most important features of Mr. Mougey’s representation was his understanding of government and his ability to communicate complicated legal concepts to a 10-member board of trustees in language that was easily understood by all. I did not know Mr. Mougey before FRS retained him and, fortunately, have not experienced circumstances where the system would need his services again. However, if needed, I would have no hesitation in retaining his services again. Please let me know if you need any additional information or assistance. Steven S.
Edison's famous adage can't ever be ignored of course: 1 part inspiration and 99 parts perspiration. However the two attitudes must be present indissolubly--both are essential--if results are to be obtained. Peter Mougey’s group is aware of such a requirement, they work very hard at the latter, and the former comes easily to them, a rare combination anywhere to be found indeed. Raphael B.
I would like to express my sincere gratitude to Peter Mougey and your entire team on behalf of my family for the amazing job done during your representation. From day one I received kindness, rapid responses to all of my questions, with polite and patient encounters with all of your staff assistants. You are the best- and I will be eternally grateful to you and your entire team. Michelle E.