KlaymanToskes (“KT”) announces that it is preparing to file a claim against David Lerner Associates (“David Lerner”) on behalf of an investor who sustained losses due to investment and sector concentrations in proprietary products invested in non-traded Oil & Gas Investments offered exclusively to David Lerner clients. Specifically, this case focuses on Spirit of America Fund (NASDAQ:SOAEX), one of three David Lerner proprietary funds that have recently seen a precipitous decline.
According to the claim, the investor was seeking to preserve his investment principal, while earning supplemental income to provide for his growing family, including his children’s educations and other future needs. As part of the strategy implemented by David Lerner, the investor was recommended to concentrate his entire account in a single investment, Spirit of America Fund. In addition, the investor was unaware that this fund, like the other proprietary David Lerner funds, contained high commissions (up to 10%), which incentivized financial advisors to recommend these products. Ultimately, due to the unsuitable strategy, the investor has lost more than $1,000,000 in investment principal. In addition, most of the interest payments received by the investor are now considered return of capital.
The sole purpose of this release is to investigate on behalf of our client who was solicited to concentrate his accounts in a single investment, Spirit of America Fund. If you held accounts with David Lerner and were recommended a trading strategy involving a concentration in Spirit of America Fund and/or were solicited to invest in other high commission proprietary products, and you have information relating to the management and supervision of your accounts, you are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.