David Lerner and Associates Defends Securities Fraud Claims

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Founded in 1976, david lerner energy fund is a securities broker-dealer with $4.5 billion in client assets. The firm operates offices in Syosset, NY, White Plains, NY, Lawrenceville, NJ, and Boca Raton, FL. Throughout its history, the firm has settled a number of disputes with regulators and customers. Most recently, the financial industry’s self-regulatory body FINRA ordered the firm to pay $12 million in restitution to customers who bought shares of a non-traded real estate investment trust called Apple REIT 10.

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The National Securities Fraud Lawyers at KlaymanToskes are investigating claims against David Lerner Associates and its responsible brokers for sales of energy-related proprietary investments such as Energy 11 L.P. and Energy Resource 12 L.P. Investors claim that DL brokers sold these private placement investments to retirees, senior citizens, and other conservative investors who were never adequately screened to determine if these risky investments were appropriate for their portfolios or investment objectives.

Investors claim that the DL brokers did not take into account the extent to which these investments could lose value, or that the illiquidity of the LPs would make it difficult for investors to sell their shares. Moreover, the LPs were not marketed to investors as being suitable for retirement accounts or other tax-advantaged vehicles.

All brokerage firms have a duty to disclose all material information about an investment opportunity to their clients. This includes a thorough disclosure of the underlying risks, sales charges and fees, operating expenses, and other important information. Brokerage firms are also required to conduct a reasonable investigation into red flags that may indicate unsuitable sales of private placements.