FINRA Suspends Broker Lloyd Johnston Over Information Request And Multiple Tax Liens

Lloyd Mark Johnston (CRD #1626695) is a previously registered broker and investment advisor who was last employed with Capital Financial Services, Inc. (CRD #8408) of Spokane, WA. He was previously employed with Legacy Financial Services, Inc. (CRD #38697) of Clinton, MD., Investors Capital Corp. (CRD #30613) of Lynnfield, MA, and Intersecurities, Inc. (CRD #16164) of St. Petersburg, FL. No current employment information is available. He has been in the industry since 1987.

FINRA suspended Johnston on 06/25/2018 indefinitely after he failed to respond to a request for information. The suspension will continue until he provides the requested information. Should Johnson decline to provide this information, continue not responding or fail to request termination of his suspension, the suspension will be converted to a bar. FINRA began its investigation on 02/08/2018.

Johnston was discharged from Capital Financial Services on 05/14/2018 for failing to disclose “reportable events” on his U4. While the reportable events were not described, BrokerCheck lists a total of 15 tax liens in his disclosures dating back to 2000.

Johnston also filed for Chapter 7 bankruptcy, receiving a discharge on 01/13/2010. Many of the judgments were included, but some were inadvertently omitted, and are still in his disclosure record. Johnston was unaware of some of these tax liens, several of which were acquired in the state of Maryland, where he worked for a ten-year period.

The State of Maryland also expressed concern over Johnston’s multiple judgement/lien disclosures, and gave him a 2-year conditional registration order, effective 02/21/2017.

A recent customer dispute filed against Johnston on 05/14/2018 alleges “unsuitable sales of alternative investments,” with requested damages of $5,000. This dispute is currently pending.

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