Last Updated: July 2025 – Brea, CA
Here’s what you need to know about Brea, CA, stockbroker Derek Johnson:
- Name: Derek Michael Johnson
- CRD Number: 2922680
- Current Employer: Morgan Stanley
- Function: Stockbroker / Financial Advisor
- Primary Location: Brea, CA
- Prior Employers: P. Morgan Securities LLC; Merrill Lynch; Citigroup Global Markets Inc.
- Can Derek Johnson be sued in FINRA arbitration? Yes
- Highest Settlement or Award: $750,000
- Pending Customer Dispute Seeks Damages of: $750,000
If you’ve sustained damages from Mr. Johnson, discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With Derek Johnson As Your Stockbroker?
Derek Johnson is currently the subject of a pending FINRA arbitration (Case No. 25-01340) filed in June 2025. The client alleges that Mr. Johnson made unsuitable recommendations involving equity investments while at Morgan Stanley, during the period of December 2023 to May 2025.The claim seeks $750,000 in damages.
In 10/2023 another customer of Derek Johnson, while with his prior employer J.P. Morgan, was paid $750,000 to settle a FINRA arbitration alleging that Johnson recommended an unsuitable. investment strategy between 5/2017-5/2020.
This type of misconduct may constitute violations of FINRA Rule 2111 (Suitability) and Regulation Best Interest (Reg BI), both of which require brokers to make investment recommendations that are aligned with a client’s financial goals, risk tolerance, and investment profile.
Allegations of Broker Misconduct Against Derek Johnson
- Unsuitability related to equity investment recommendations
- Unsuitable investment strategy in a managed account
FINRA Rule 2010-states that a member: “in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.”
Firms Have a Duty to Supervise their Financial Advisors (FINRA Rules 3110 & 2090)
Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer.
FINRA Rule 2111- suitability -Regulation Best Interest
Recover Your Investment Losses Now With Rex Securities Law
Investigations of Other Morgan Stanley Brokers
Our Investigations of other J.P. Morgan Brokers
If you have suffered investment losses in an account handled by Derek Johnson, contact us for a complimentary consultation with an experienced securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL, and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors, and broker-dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis, meaning that you do not pay legal fees unless we are successful.