Silver Law Group is investigating Wilmington, Delaware-based Coastal Equities, Inc. (CRD# 23769) broker Luke Johnson (CRD# 461987) for unsuitable recommendations in non-traded REITs, annuities and other illiquid investments.
In August 2017, a Coastal Equities customer filed a FINRA arbitration alleging that Johnson recommended unsuitable securities purchased in approximately 2015. The FINRA arbitration complaint alleges $56,000 in damages. In 2005, Johnson’s previous firm permitted Johnson to resign after he admitted that he signed the name of his office’s designated supervisor on four (4) variable life insurance application forms which indicated an acceptable suitability review by the supervisor.
Johnson operates under the name Legend Capital Group Inc. As part of his business under Legend Capital Group, he sells fixed insurance and annuity products for various insurance companies, according to his FINRA BrokerCheck report. He is also an investment advisor with Coastal Equities.
Coastal Equities has employed Johnson since April 2012 in Wilmington, Delaware. Upon information and belief, he has sold non-traded REITs and other illiquid investments to other Coastal Equities customers.
Non-traded REITs function similar to REITs traded on exchange, but they are void of liquidity. Non-traded REITs typically have high fees, commissions and up-front costs in the range of 10%-15%. Typically, non-traded REITs are illiquid for years, meaning your money could be tied up in the investment indefinitely.
The SEC and FINRA have both published advisor alerts concerning non-traded REITs. Additionally, in 2015, a study was published that estimates shareholders of non-traded REITs collectively make $50 billion less than shareholders of publicly-traded REITs.
The same article states that non-traded REITs are typically sold by independent broker-dealers who sell products and services through brokers who are not direct employees of the firm.
If you’ve lost money investing with Luke Johnson and Coastal Equities in non-traded REITs, annuities or other illiquid investments, we may be able to help you recover your money.
We work on a contingency fee, meaning we only get paid if we recover money for you.
Contact our law firm today to discuss your legal rights. We work on a contingency fee basis, meaning we only get paid if we recover money for you.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Please contact Scott Silver of the Silver Law Group for a free consultation at firstname.lastname@example.org or toll free at (800) 975-4345.