Phillip Andrew Johnson Borrowed $528,000 from a Firm Customer but Failed to Notify His Employer and Seek Permission – FINRA AWC

Phillip Johnson of Kingwood, Texas, allegedly borrowed $528,000 from a customer but failed to notify or obtain written approval of the loan in advance from his brokerage firm, SunTrust, according to allegations by the Financial Industry Regulatory Authority. Moreover, Johnson allegedly made an inaccurate statement on his SunTrust compliance questionnaires related to borrowing from a firm customer. During this time period, SunTrust did not permit loans between registered persons and customers who were not close family members, according to FINRA. Johnson and the firm customer are not family members, FINRA stated.

One should also note that, according to the FINRA AWC, Johnson neither admitted nor denied the FINRA findings.

FINRA suspended Johnson for 3 months from association with any FINRA member in all capacities, and applied a fine in amount of $5,000, according to the FINRA AWC.

The investor rights lawyers at Goldman Scarlato & Penny law firm are investigating Mr. Johnson’s conduct to determine if he borrowed money from a firm customer without a written approval of the loan may contact investor rights attorney Alan Rosca to provide information or inquire about their legal options.

Johnson Entered the Securities Industry in or around 1976 and Holds Series 6, 7, 22 and 24 Licenses

Johnson, a previously registered broker based in Kingwood, Texas, has been associated with several FINRA members since 1976, including SunTrust Investment Services, Inc., from February 3, 2003 through April 24, 2015. At all relevant times, Johnson was associated with SunTrust and registered with FINRA as a General Securities Principal. On December 21, 2017, the firm with which Johnson was associated filed a Uniform Termination Notice for Securities Industry Registration for Johnson, terminating his association with the firm as of December 31, 2017. After his association with that FINRA member, Johnson did not re-associate with another FINRA member firm, FINRA stated.

Philip Johnson Was the Subject of Two Customer Complaints

Phillip Johnson has been the subject of two customer disputes, both of which have been settled. In the most recent dispute, the client alleged Johnson induced her to liquidate a $540,000 variable annuity bought elsewhere and invest $258,000 proceeds into investment real estate with Mr. Johnson. He also arranged a personal loan with the client to purchase the real estate, all according to FINRA disclosures  The case was settled for $525,000 according to FINRA records.

Securities Lawyers Investigating on Behalf of Investors

The Goldman Scarlato & Penny PC law firm is currently investigating Phillip Andrew Johnson’s alleged violations of the FINRA Rules, to determine whether any other investors may have suffered losses. The firm represents investors across the country who lose money as a result of investment-related fraud or misconduct. The Goldman Scarlato & Penny attorneys take most cases on behalf of investors on a contingency fee basis, advance the case costs, and only get paid for their fees and costs out of money recovered for their clients.  Attorney Alan Rosca, a security lawyer and adjunct professor of securities regulation has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to securities class actions.

If you or a loved one have lost money investigating with Phillip Andrew Johnson, you may contact attorney Alan Rosca or his colleagues for a free, no-obligation evaluation of your recovery options, at 888-998-0530, via email at, or through the contact form on this webpage.

filed under: Investigations

Tags: , , , ,

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent updates regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases. Also, the brokercheck report linked to some of our blogs is the up-to-date version as of the date of posting. Visitors may check the most recent version of each brokercheck report at