Daniel Todd Lerner, Broker with David Lerner Associates, Named in FINRA Investigation Alleging Recommendation of Unsuitable Investments

INVESTORS: David Lerner Associates broker Daniel Todd Lerner was named in a FINRA investigation alleging he recommended investments in Energy 11, L.P, Energy 12, L.P., and Spirit of America Energy Fund to multiple customers that were unsuitable.

Daniel Todd Lerner (CRD: 1255769) is registered as a broker and investment adviser with David Lerner Associates, where he’s been employed since 2000. Lerner was previously registered as a broker with Prudential Securities Incorporated in 2000.

Lerner has fourteen disclosures on his BrokerCheck report. Four customer disputes were denied and one was closed with no action taken.

July 2022 Investigation

Initiated By: FINRA

Description of Investigation: FINRA Case #20210723292. On July 28, 2022, FINRA made a preliminary determination to recommend that disciplinary action be brought against Daniel Todd Lerner alleging violation of FINRA Rules 2111 and 2010 in that he recommended investments in Energy 11, L.P, Energy 12, L.P. and Spirit of America Energy Fund to multiple customers without a reasonable basis to believe the investments were suitable for those customers based on their investment profiles; and violation of FINRA Rules 4511 and 2010 in that he willfully caused David Lerner Associates, Inc., to maintain inaccurate books and records regarding customer investment profiles.

Broker Comment: I vehemently disagree with FINRA’s allegations. I take my regulatory responsibilities, and my responsibilities to my clients, with the utmost degree of seriousness. I have meritorious defenses which I intend to vigorously pursue, including that my recommendations were suitable and consistent with the firm’s compliance protocols. The global COVID-19 pandemic wreaked havoc on several U.S. and global industries, which caused several U.S. companies to, among other things, temporarily suspend distributions, which I believe impacted how some investors viewed the subject investments.

March 2022 Customer Dispute

Status: Pending

Allegations: Unsuitability, misrepresentation/omission and breach of fiduciary duty

Damage Amount Requested: $250,000.00

Broker Comment: The allegations do not include misappropriation, forgery, theft, or conversion of funds or securities.

February 2022 Customer Dispute

Status: Award / Judgment

Allegations: Unsuitability, misrepresentation/omission and fraud

Damage Amount Requested: $49,999.00

Damages Granted: $23,480.00

June 2021 Customer Dispute

Status: Pending

Allegations: Unsuitability, misrepresentation/omission 

Damage Amount Requested: $450,000.00

March 2021 Customer Dispute

Status: Settled

Allegations: Unsuitability, misrepresentation/omission, breach of fiduciary duty

Damage Amount Requested: $100,000.00

Settlement Amount: $82,500.00

January 2021 Customer Dispute

Status: Settled

Allegations: Unsuitability, misrepresentation/omission, breach of fiduciary duty, supervision

Damage Amount Requested: $100,000.00

Settlement Amount: $59,786.24

October 2020 Customer Dispute

Status: Settled

Allegations: Unsuitability, misrepresentation/omission, fraud, breach of conduct in connection with Energy 11

Settlement Amount: $918,750.00

Broker Comment: David Lerner Associates rescinded claimant’s E11 shares.

July 2020 Customer Dispute

Status: Pending

Allegations: Unsuitability, misrepresentation/omission, breach of fiduciary duty

Damage Amount Requested: $175,000.00

April 2019 Customer Dispute

Status: Settled

Allegations: Unsuitability, misrepresentation/omission, fraud, breach of fiduciary duty and failure to supervise

Settlement Amount: $92,000.00

The Sonn Law Group is currently investigating allegations surrounding Daniel Todd Lerner. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.