FINRA Lawyer Helping Pursue O&G Losses Involving David Lerner

How Energy 11 Investors Can Pursue Oil and Gas Investment Losses From David Lerner & Associates

Broker-Dealer Owes $45M in Unpaid Distributions And Has Been The Subject of FINRA Arbitration Claims

Once again, David Lerner & Associates has come under scrutiny over proprietary products that it sold exclusively to its customers. In the firm’s yearly report, the broker-dealer admitted that it owes $45M in unpaid distributions to those who invested in Energy 11, LP.

Set up in 2013, Energy 11, LP is a limited partnership set up to acquire and develop US-based oil and gas properties. Sold as private placement shares, it raised $374M from investors in just two years. Distributions from the Fund were suspended from March 2020 through November 2021 in the wake of COVID-19 and the drop in demand for oil and gas. Energy 11 then restarted monthly distributions at half the regular rate. It has since gone back to paying the 7% distribution rate that investors were promised.

Our expert FINRA lawyers at Shepherd Smith Edwards and Kantas (investorlawyers.com) are representing claimants in pursuing their financial recovery from David Lerner Associates for unsuitably recommending that they invest in Energy 11. Many of these customers are retail investors and retirees who should never have gotten involved in oil, gas, and energy products, which tend to be high-risk and vulnerable to market volatility.

Broker Negligence: Did a David Lerner Financial Advisor Unsuitably Recommend Energy 11 To You?

In late August 2022, FINRA barred former David Lerner broker Jeffrey Basford after he refused to be interviewed by the self-regulatory organization (SRO) for the possibly unsuitable sales of proprietary energy products. He is currently facing two pending FINRA arbitration claims in which the claimants are collectively seeking $300K. They are alleging misrepresentations, omissions, and unsuitability.

FINRA is also investigating broker Daniel T. Lerner, who is a senior executive and the son of firm founder David Lerner, over his allegedly unsuitable recommendation of the proprietary Energy 11, Energy Resources 12, LP, and Spirit of America Energy Fund to customers. Among his alleged victims was reportedly an elderly investor who contends that these oil and gas investments were misrepresented to her, which is why she thought she had purchased municipal bonds.

Daniel Lerner is currently facing $875K in pending FINRA arbitration complaints. Other recent investor claims involving him were settled for $1.15M.

However, Daniel Lerner and Jeffrey Basford are not the only David Lerner brokers who have been accused of allegedly prioritizing the earning of high commissions and fees rather than making sure that marketing and selling these proprietary energy funds were in their customers’ best interests.

Not only that but David Lerner Associates has a history of having to pay multimillion-dollar settlements to regulators, as well as substantial FINRA arbitration settlements or awards to customers for unsuitably selling proprietary products to them. In 2013, the SRO ordered the broker-dealer to pay $12M to customers that had bought shares in the firm’s Apple REITs, which are non-traded real estate investment trusts (non-traded REITs).

Why Should You Contact A Seasoned FINRA Lawyer Over Your Energy 11 Fund Losses?

Just because FINRA is investigating a financial advisor or a broker-dealer over broker misconduct or negligence allegations doesn’t necessarily mean you will recover any money from these regulatory probes. This is why you need to speak with skilled FINRA attorneys who have a track record of successfully going after brokerage firms for damages that they owe customers. This is where Shepherd Smith Edwards and Kantas come in.

For over 30 years, our dedicated FINRA Lawyer teams have successfully represented thousands of investors from all walks of life in collectively recovering many millions of dollars from broker-dealers across the United States. We have the knowledge, resources, and skills to see an investor lawsuit to its conclusion.

This is not the type of case you want to pursue without solid securities legal representation. Should we agree to work together, the Shepherd Smith Edwards and Kantas FINRA Lawyer teams will fight for your financial recovery. To request your free, no-obligation case consultation with one of our FINRA Lawyers, call (800) 259-9010 today.