KlaymanToskes Investigates David Lerner Associates Recommended Investments in Proprietary Non-Traded Investments Concentrated in Energy Sector

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Updated on: November 17, 2020

National securities fraud law firm, KlaymanToskes, announces  its investigation into David Lerner Associates for the unsuitable concentration in proprietary products invested non-traded Oil & Gas Investments offered exclusively to its clients.  The concentrated investments include the Energy 11 LP, Energy Resource 12 LP and Spirit of America Fund (SOAEX).  In addition to the precipitous loss in value, the majority of the interest payments received by investors are now considered, return of capital.

According to securities attorney, Lawrence L. Klayman, “David Lerner Associates recommended proprietary products that were unsuitable for most conservative or retired investors”.  According to the Energy 11 LP and Energy Resource 12 LP Prospectus, the Partnership Agreement with the Managing Dealer, the Managing Dealer receives a total of 6% in selling commissions and Dealer Manager Incentive Fees, which is a cash payment of up to an amount equal to 4% of gross proceeds of the common units sold based on the performance of the Partnership. Klayman adds, “Based on SEC Filings there was an incentive to recommend these proprietary products at the expense of investors”.

David Lerner Associates failed to supervise the sales and marketing of its proprietary products to investors who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation.  Furthermore, David Lerner Associates and its financial advisors misrepresented material facts , related to the risks associated with illiquid, concentrated investments in the Oil & Energy sector and higher fees and costs.  The sole purpose of this release is to investigate investment recommendations provided by David Lerner Associates.  Investors are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $185 million for investors in arbitration. KlaymanToskes has office locations in California, Florida, New York and Puerto Rico.