Luke Michael Johnson (CRD #3257008, Scottsdale, Arizona)

February 1, 2024 – An Order Accepting Offer of Settlement was issued in which Johnson was assessed a deferred fine of $15,000, suspended from association with any FINRA member in all capacities for 18 months, and ordered to pay $21,797.30, plus interest, in deferred partial restitution to customers. The amount of restitution being paid to the customers is equal to the commissions that Johnson received in connection with the customers’ at-issue investments. Without admitting or denying the allegations, Johnson consented to the sanctions and to the entry of findings that he made unsuitable recommendations to purchase more than $2.35 million in illiquid alternative investments to his customers. The findings stated that Johnson earned more than $132,900 in commissions from these recommendations. Johnson’s recommendations were unsuitable for each of the customers based on their investment profiles—including the customers’ net worth, liquid net worth, annual income, investment objectives, risk tolerance, and, for the senior customers, their ages. More specifically, Johnson’s recommended purchases resulted in the customers becoming overconcentrated in alternative investments. In addition, Johnson’s recommendations for some of the customers to purchase limited partnership interests were unsuitable because although each of the alternative investments required investors in these investments to be accredited investors, none of these customers were, as Johnson knew. The findings also stated that Johnson falsified the books and records of his member firm and caused numerous books and records, including New Account Forms, Disclosure Forms, and subscription agreements to contain false and inaccurate information about his customers and about these customers’ purchases of alternative investments. In addition, Johnson dramatically inflated his customers’ net worth and liquid net worth and dramatically understated the percentage of his customers’ assets invested in alternative investments in order to circumvent the firm’s concentration policy and supervisory oversight. The suspension is in effect from February 5, 2024, through August 4, 2025. (FINRA Case #2019061213402) If you have suffered losses as a result of Luke Michael Johnson's act and/or actions we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their portfolios that are managed by Luke Michael Johnson. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-618-0545 or email Matthew Schwartz directly at mschwartz@tslfirm.com.