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DAVID LERNER CUSTOMER ALERT: WHITE PLAINS, NY BRANCH

June 2, 2023

Losses at David Lerner Associates? Contact KlaymanToskes

National investment loss lawyers KlaymanToskes continues its investigation of David Lerner Associates (“DLA”) and is currently pursuing FINRA arbitration claims on behalf of investors who suffered losses with DLA and its financial advisors due to unsuitable investment recommendations. KlaymanToskes is currently investigating DLA’s White Plains, NY branch.

David Lerner Associates has a significant regulatory/disciplinary history with FINRA. DLA has been censured and fined many times for securities violations including unfair pricing practices, failure to report to regulators, failure to maintain written reports, and failing to follow the firm’s own compliance requirements, among other issues. 

If you suffered investment losses at David Lerner Associates’ White Plains, NY branch, or other DLA branches, you are encouraged to contact Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options. All consultations are free and we do not collect attorney’s fees unless we obtain a financial recovery for you.

David Lerner Associates’ White Plains, NY Branch – 599 West Hartsdale Ave.

The following list contains brokers/financial advisors currently registered with David Lerner Associates, Inc. in White Plains, New York. DLA’s White Plains branch is located at 599 West Hartsdale Avenue. According to their linked FINRA BrokerCheck profiles, these DLA-associated individuals have been hit with significant public disclosures:

Daniel Todd Lerner (CRD# 1255769):
13 Public Disclosures: 1 Pending Customer Complaint – Customer alleges unsuitability, misrepresentations, and a breach of fiduciary duty. The complaint alleges damages of $250,000. 

1 Regulatory Investigation (Initiated by FINRA): On July 28, 2022, FINRA made a preliminary determination to recommend that disciplinary action be brought against Daniel Todd Lerner alleging violation of FINRA Rules 2111 and 2010 in that he recommended investments in Energy 11, L.P, Energy 12, L.P. and Spirit of America Energy Fund to multiple customers without a reasonable basis to believe the investments were suitable for those customers.

6 Settled Customer Complaints: (1) Customer alleged unsuitable and misrepresented investment recommendations. The complaint was settled for $455,000. (2) Customer alleged unsuitability, misrepresentations, and a breach of fiduciary duty. The complaint was settled for $82,500. (3) Customer alleged unsuitability, misrepresentations, breach of fiduciary duty, and failure to supervise. The complaint was settled for $59,786.24. (4) Customer alleged unsuitability, misrepresentations, fraud, and a breach of conduct in connection with Energy 11. The complaint was settled for $918,750. (5) Customer alleged unsuitability, misrepresentations, and a breach of fiduciary duty. The complaint was settled for $25,000. (5) Customer alleged unsuitability, misrepresentations, breach of fiduciary duty, and failure to supervise. The complaint was settled for $92,000. Daniel Lerner has 4 additional customer complaints that were closed/denied.

1 Arbitration Award: Customer alleged unsuitability, misrepresentations, and fraud. Customer awarded $23,480.

Michael Edward Kinkel (CRD# 5947093):
1 Pending Customer Complaint – Customer alleges $100,000 in damages due to misrepresented investment recommendations and poor recommendations/poor advice. 

Joseph Robert Aspelund (CRD# 6006335):
1 Pending Customer Complaint – Customer alleges $50,000 in damages due to unsuitable and misrepresented investment recommendations in Spirit of America Energy Fund (SOAEX).

Alan Charles Lowenfels (CRD# 4512765):
2 Settled Customer Complaints: (1) Customer alleged unsuitable and misrepresented investment recommendations. The complaint was settled for $25,000. (2) Customer alleged unsuitable and misrepresented investment recommendations. The complaint was settled for $15,000.

Charles Christopher Castro (CRD# 5556780):
1 Settled Customer Complaint: Customer alleged $235,000 in damages due to unsuitable investment recommendations and misrepresentations. The complaint was settled for $40,000.

Nicholas T. Jembelis (CRD# 4028696):
1 Settled Customer Complaint: Customer alleged unsuitable investment recommendations and misrepresentations/omissions. The complaint was settled for $22,500.

John C. Donohue (CRD# 7386718):
1 Financial Disclosure: John Donohue has one financial compromise disclosure. The disclosure is currently pending.

Jose Luis Romero (CRD# 4189970):
1 Financial Disclosure: Jose Romero has one financial disclosure for bankruptcy. The matter was discharged. 

David Lerner Associates: Red Flags and Executives’ Misconduct 

Several of David Lerner Associates’ direct owners and executive officers have many notable public disclosures according to their (linked) FINRA BrokerCheck reports. The following list includes DLA’s President, Chief Compliance Officer (CCO), and majority owner/shareholder. 

David E. Lerner (CRD# 307120)
Majority Owner/Shareholder 

  • 17 public disclosures:
    • 6 Regulatory Disclosures: According to FINRA BrokerCheck, David Lerner has six regulatory complaints which have fined him over $282,500, and ordered him to pay at least $250,000 in restitution to customers. Notably, David Lerner was previously suspended from acting as a broker for one year and suspended in all principal capacities for two years.
    • 10 Settled Customer Complaints: David Lerner has ten customer complaints which have been settled in favor of the investors for a collective total of nearly $1 million. 
    • Arbitration Award (in favor of the investor): Notably, David Lerner was named in an arbitration award whereby David Lerner Associates, Inc. was ordered to redeem all shares of Apple Hospitality REIT, Inc. held in their customers’ accounts, for a total price of $260,000.

Martin Lerner (CRD# 871038)
Acting Chief Compliance Officer (CCO)

  • 9 public disclosures:
    • 1 Regulatory Disclosure: According to FINRA BrokerCheck, Martin Lerner has one regulatory complaint, which ordered David Lerner Associates, Inc. to pay a monetary fine in the amount of $400,000 and suspended Martin Lerner from associating with any member firm in any supervisory or principal capacity for 20 business days.
    • 6 Settled Customer Complaints: Martin Lerner has six customer complaints which have been settled in favor of the investors for a collective total of $513, 301.48. Notably, several customer complaints alleged unsuitable and misrepresented investment recommendations.
    • Arbitration Award (in favor of the investor): Notably, Martin Lerner was named in an arbitration award whereby David Lerner Associates, Inc. was ordered to redeem all shares of Apple Hospitality REIT, Inc. held in their customers’ accounts, for a total price of $260,000. 

Martin Kevin Walcoe (CRD# 1593935)
President 

  • 5 public disclosures:
    • 2 Settled Customer Complaints: Martin Walcoe has two customer complaints which have been settled in favor of the investors for a collective total of $160,183.02. Both customer complaints alleged unsuitable and misrepresented investment recommendations, as well as a breach of fiduciary duty.
    • 2 Additional Customer Complaints: Walcoe has two additional customer complaints. A denied complaint alleged unauthorized trading and a closed complaint alleged unsuitable investment recommendations.
    • Arbitration Award (in favor of the investor): According to FINRA BrokerCheck, Martin Walcoe was named in an arbitration award whereby David Lerner Associates, Inc. was ordered to redeem all shares of Apple Hospitality REIT, Inc. held in their customers’ accounts, for a total price of $260,000.

Investors can learn more about their broker/advisor and brokerage firm through FINRA BrokerCheck – a free tool provided by the Financial Industry Regulatory Authority that discloses brokers’ licensing, employment history, and most importantly, public disclosures including customer complaints and arbitration awards. 

If you suffered investment losses at David Lerner Associates due to broker misconduct and/or securities violations, you are encouraged to contact Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com to discuss recovery options. All consultations are free and we do not collect attorney’s fees unless we obtain a financial recovery for you.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com