Daniel Lerner, David Lerner’s Son- Subject of Regulatory Action Over Energy 11/Energy 12/ Spirit of America Energy Funds

Daniel Lerner, David Lerner’s Son- Subject of Regulatory Action Over Energy 11/Energy 12/ Spirit of America Energy Funds 150 150 Robert Rex, Esq.

Daniel Lerner 

Energy 11, Energy Resources 12, Spirit of America Energy Fund  


September 2022-Lawrenceville, NJ

The FINRA records of  Daniel Lerner,  son of David Lerner and a broker with David Lerner Associates ,  disclose 3 pending customer disputes involving the sale of energy funds. His FINRA record discloses 10 prior customer disputes and a recent regulatory action which is also related to the sale of energy funds.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In 7/2022 FINRA made a preliminary determination to recommend that disciplinary action be brought against Daniel Lerner alleging that he violated industry rules in recommending investments in Energy 11 L.P. , Energy 12 L.P. and Spirit of America Energy Funds multiple customers without a reasonable basis to believe the investments were suitable for those customers based on their investment profiles.

There are currently 3 cases pending against Daniel Lerner seeking $875,000 for losses on investments in Energy 11, Energy 12 and Great Art Fund.

Four cases by Daniel Lerner involving the energy funds have already been settled including FINRA case 20-3345 which was resolved in 2/2022 with a cash payment to the customer of $918,750.

Daniel Lerner has been with David Lerner Associates  since 9/2000.

David Lerner’s Energy 11-Energy Resources 12  Problem

According to their annual report this year, Lerner’s proprietary fund,  Energy 11 L.P., owes $45 million in unpaid distributions ($2.39 per unit). Lerner has faced multimillion dollar settlements previously in connection with the sales of proprietary products, including Apple REITs and proprietary mutual funds.

Earlier this month, veteran broker Jeffrey Basford was barred from the industry by FINRA after he refused to appear for testimony in connection with a FINRA investigation into Basford’s potential unsuitable sales of proprietary energy products to firm customers. Basford was registered with Lerner since 2006 until May 2022. In 5/2022 a David Lerner Associates customer was paid $205,000 to resolve allegations related to the sale of Energy 11 and Energy Resources 12 by Basford. There are currently two pending customer cases involving Jeffrey Basford seeking damages for the recommendation of Energy 11 and Energy Resources 12.

If you have losses in an account handled by Daniel Lerner ,  or if you have losses on Energy 11 or Energy Resources 12, or any other investment you believe was unsuitable for your portfolio, that was purchased from David Lerner Associates call for a no charge consultation to discuss your options for recovery of damages.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

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Rex Securities Law

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