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Levin Law Investigates David Lerner and Unsuitable Recommendations in Energy Investments

Levin Law | 2.25.2021

Recovering Losses From Energy Sector Investments, Including Spirit of America, Energy 11, and Energy Resources 12 With David Lerner Associates

National securities and investment fraud law firm, Levin Law, P.A. (“Levin Law”) is investigating broker-dealer David Lerner Associates Inc. (“David Lerner”) and its representatives for making unsuitable recommendations in energy investments, including Energy 11 LP, Energy Resource 12 LP, and the Spirit of America Fund (NASDAQ: SOAEX).

If you believe that you have suffered losses as a result of investing with David Lerner Associates or due to overconcentration in energy stocks, contact Levin Law, P.A. for a free case evaluation. Call (305) 402-9050 or email to determine if you may be able to recover your losses through a FINRA arbitration.

History of Problems for David Lerner

According to Investment News, David Lerner Associates Inc. recently reported a “negative net worth” of $22 million in 2019. The broker-dealer has had numerous inquiries regarding their practices, including a 2012 investigation by the Financial Industry Regulatory Authority (FINRA) for overcharging retail customers. David Lerner was required to pay over $3.7 million in fines and restitution as a result of the regulatory agency’s findings.

In 2013, FINRA again ordered the firm to pay after finding that it engaged in improper sales practices concerning the recommendation and sale of its non-traded real estate investment trust known as Apple REIT 10. 

Unsuitable Recommendations in Energy Stocks

The firm is currently being investigated for recommendations in high-risk energy funds, including Spirit of America, Energy 11, and Energy Resources 12. As Levin Law discussed in a previous blog, the recommendation and sale of these risky investments is likely unsuitable for the average investor.

Prior allegations indicate that the broker-dealer firm targeted senior investors, misrepresenting the risks associated with heavy investment in the energy sector. Furthermore, it has been alleged that David Lerner financial advisors failed to engage in proper asset allocation by overconcentrating client portfolios in this volatile sector.

Contact Levin Law, P.A. for a Free Consultation

If you invested in Energy 11, Energy Resources 12, or Spirit of America Energy Fund (SOAEX) with David Lerner Associates and suffered losses, you might be able to obtain financial compensation through a FINRA arbitration claim. 

Contact Levin Law, P.A. for a free case evaluation by calling (305) 402-9050 or submit an email directly to managing partner Brian Levin at Levin Law accepts most cases on a contingency-fee basis, meaning that clients are not obligated to pay Levin Law’s attorney fees unless money is recovered on their behalf. 

About Levin Law

Levin Law is a premier national securities and class action law firm.  Brian Levin, Levin Law’s managing attorney, has obtained settlements and recoveries over $100,000,000 in assets through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.

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