David lerner lawsuit has $4.5 billion in client assets. It’s a broker-dealer with branch offices in the Northeast and Florida. The firm has been a target of several investor disputes, and it’s settled with regulators for millions of dollars in the past.
What is the job of an associate?
The firm’s representatives have sold many high-commission, illiquid and non-traded financial products to advisory clients. It’s the broker’s duty to fully explain all underlying risks, sales charges and operating expenses before recommending such investments.
In the case of Energy 11 LP and Energy Resources 12 LP, brokers at DL Associates recommended disproportionately large investments in these limited partnerships, which invest in gas and oil investments. Those investments have experienced significant losses as the market has shifted.
Similarly, DL associates have sold Apple REIT Ten and other REITs to investors who have lost their money. The illiquid REITs were promoted as a safe alternative to stocks, but the company misrepresented their risks and failed to conduct proper due diligence on the investments.
Investors claim that DL associates were negligent in recommending these high-risk, non-traded investments. Many of these investors are seeking to recover their losses. National securities fraud lawyers KlaymanToskes have already filed FINRA arbitration claims against DL associates in connection with the sales of these investments. If you have invested with DL associates, please contact us to learn more about your options to pursue recovery of your losses. Claim numbers are 21-00120 and 21-01435.