Losses on Investments Sold by David Lerner Associates

COVID-19 causes investor panic and massive losses in oil, gas, and energy sectors

Sonn Law Group is investigating investment losses related to the Spirit of America Energy Fund (SOAEX). If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Spirit of America mutual funds are available exclusively at David Lerner Associates, a privately-held securities broker-dealer headquartered in Syosset, New York. SOAEX was launched in July 2014 and invested 80% of its assets in several aspects of the oil and gas industry. The Fund sought to provide shareholders with long-term capital appreciation and current income. 

David Lerner and Associates has over $4.5B in client assets. It is also the distributor of  the mutual funds:

• Energy 11
• LP
• Energy Resources 12

All of these funds invest in the oil, gas, and energy sectors, which were already speculative markets. Amid investor panic due to COVID-19, the volatility of the market has caused investors to suffer massive losses in these areas. 

A broker must have reasonable grounds for each recommendation made to you. The broker generally determines whether the recommendation is suitable based on your other securities holdings, financial situation, and risk tolerance. In addition, before a firm offers security to its customers, the firm must conduct due diligence, that is investigating the facts surrounding the security, to confirm that it is suitable for any customer of the firm. 

The suitability of an investment for a particular individual is at the center of the investment process and one of the key fiduciary duties owed by a firm and its broker to the customer. A firm may be held liable for its failure to recommend suitable investments to its customers.

Contact Sonn Law to Discuss Recovery Options

If you recently invested in funds with David Lerner Associates, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.