On July 12, 2023, an individual named Luke Michael Johnson was accused in a FINRA (Financial Industry Regulatory Authority) complaint of making unsuitable recommendations to customers. These recommendations involved advising customers to invest over $2.35 million in illiquid alternative investments. The complaint alleges that these recommendations were unsuitable based on the customers’ financial profiles, including factors like net worth, liquid net worth, income, investment goals, risk tolerance, and age for senior customers. Additionally, Johnson earned substantial commissions exceeding $132,900 from these recommendations.
The complaint further asserts that Johnson, or individuals acting under his direction, falsified information on customer account forms and alternative investment documents. This included inflating reported net worth and liquid net worth, as well as misrepresenting risk tolerance, liquidity needs, annual income, and accredited investor status. Johnson’s actions were designed to circumvent the firm’s policy that limited customers to investing no more than 35% of their liquid net worth in alternative investments.
This case is identified as FINRA Case #2019061213402.
If you lost money because of Luke Johnson’s financial advice, please contact Banks Law Office today.