Phoenix, Ariz. - The Arizona Corporation Commission revoked the investment adviser representative license of Luke M. Johnson of Scottsdale and ordered him and his affiliated company Legend Capital Group, Inc. to pay $229,241 in restitution and a $20,000 administration penalty for committing securities fraud.

The Commission found that Mr. Johnson, while licensed as an investment adviser representative in Arizona, fraudulently sold GPB Capital limited partnership interests to investors, many of whom were Arizona residents.

The Commission found that Mr. Johnson made multiple misrepresentations to investors about the partnership interests.  First, the partnership interests were illiquid and highly speculative investments, but Johnson told investors they were solid, safe, or low risk.

Further, the Commission found that Johnson misrepresented that he had personally invested in GPB Capital, and after finding out that GPB Capital was accused of being a Ponzi scheme he continued to solicit new investors without disclosing that allegation.

The U.S. Securities and Exchange Commission is proceeding against GPB Capital and is seeking to appoint a receiver for it to distribute assets to investors. Investors can find information about that process at www.gpb-cap.com.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21264A-23-0234.