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Customer Says David Lerner Associates Broker Lawrence Merl Unsuitably Recommended Energy 11, LP
Claimant Suffered Significant Losses in Non-Traded Oil and Gas Investment
An investor recently filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against the brokerage firm, David Lerner Associates for losses he sustained in the Energy 11, LP, an oil and gas private placement that many of the firm’s brokers have sold exclusively to customers.
This claimant worked, specifically, with David Lerner Associates broker Lawrence Merl, whom he says that the broker-dealer failed to properly supervise.
The customer contends that Merl recommended he place almost all his investable assets in this oil and gas private placement – overconcentrating his portfolio – and then proceeded to misrepresent the investor’s net worth on subscription documents as $11.5M (it was, in fact, $2M) so that his investment would be accepted.
Under Energy 11’s offering terms, New Jersey residents are not allowed to invest over 10% of their net worth in the oil and gas investment. Now, this investor is claiming significant financial losses.
This may not be the only Energy 11 investor fraud claim involving Lawrence Merl. According to his BrokerCheck record, Merl was named in an Energy 11 fraud case last year in which the customer is seeking $999,999 in damages. He has been a David Lerner Associates broker for 27 years.
Energy 11 Investor Fraud Claims
Many David Lerner Associates customers who were sold investments in Energy 11, LP are claiming that their brokers unsuitably recommended this oil and gas private placement.
Run by Glade Knight, also the founder of Apple Hospitality REIT, Inc. (which also sold Apple REIT products through the broker-dealer and this led to numerous investor fraud claims), this private placement invests in non-operated working interests in over two hundred producing wells and future development locations in Mountrail County, North Dakota.
Last year, following the volatility wrought by COVID-19, oil prices plunged as did the revenue of oil companies. Energy 11, LP suspended investor distributions.
Experienced Energy 11 Investor Fraud Law Firm
Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) continues to speak with customers across the United States who may have been unsuitably recommended Energy 11, Energy Resources 12, and Spirit of America Energy (SOAEX) mutual fund.
Already, our seasoned oil and gas fraud attorneys are actively pursuing FINRA arbitration claims against David Lerner Associates for investors’ losses. Call us at (800) 259-9010 or fill out our contact form today.