According to FINRA BrokerCheck records, multiple customers of David Lerner Associates broker Daniel Todd Lerner have alleged that proprietary energy private placements, including Energy 11, L.P. and Energy Resources 12, L.P., were recommended to them despite being illiquid, high-risk products poorly matched to their financial profiles. A September 2025 customer complaint alone seeks $960,511 in damages.
If you suffered losses in Energy 11, Energy Resources 12, or other private placements recommended by a David Lerner Associates broker, the experienced alternative investment loss attorneys at Meyer Wilson Werning can help evaluate whether your losses are the result of actionable misconduct. Contact us today for a free and confidential consultation, and you pay nothing unless we recover for you.
What Do Recent Disclosures Report About Daniel Lerner?
Daniel Todd Lerner’s FINRA BrokerCheck report (CRD# 1255769) reflects 20 total disclosures, including one regulatory action and 19 customer dispute disclosures. The most recent and serious disclosures are summarized below.
- May 2025 – FINRA Regulatory Action (Final): FINRA found Lerner recommended an illiquid proprietary limited partnership to a 92-year-old retiree, representing approximately 25% of her liquid net worth.
- April 14, 2026 – Pending Customer Complaint: A customer alleged unsuitable recommendations involving Energy 11, L.P. and Energy Resources 12, L.P. private placements. Damages sought: $380,000. April 8, 2026 – Pending Customer Complaint: A customer alleged misrepresentation involving Energy 11, L.P. and Energy Resources 12, L.P. Damages sought:222,091.
- September 8, 2025 – Pending Customer Complaint: A customer alleged unsuitability, misrepresentation, and breach of fiduciary duty. Damages sought: $960,511.
- September 8, 2025 – Pending Customer Complaint: A second customer alleged unsuitability, misrepresentation, and breach of fiduciary duty related to Energy Resources 12, L.P. purchases beginning July 2018. Damages sought: $192,000.
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What Do Past Regulatory Actions Indicate for David Lerner Associates Investors?
The complaints against Daniel Lerner do not exist in a vacuum. David Lerner Associates has faced significant regulatory scrutiny for its sales practices involving proprietary energy funds.
Key regulatory findings and complaint data for the firm include:
- FINRA sanctioned David Lerner Associates in an Acceptance, Waiver and Consent (AWC) order for unsuitable sales of illiquid, high-commission energy securities, including Energy 11 LP and Energy Resources 12 LP
- FINRA ordered David Lerner Associates to pay restitution of $1,002,566 to customers harmed by unsuitable LP1 and LP2 sales, issued a censure, and suspended the firm from selling illiquid, proprietary products for two years.
- FINRA’s AWC cited the firm’s failure to ensure that sales of Energy 11 LP and Energy Resources 12 LP were suitable for over 200 customers
- Nearly $600 million of Energy 11 LP and Energy Resources 12 LP was sold to over 6,000 customers by the firm
- FINRA’s AWC against David Lerner Associates specifically cited Lerner’s recommendation of LP1 to a 92-year-old retiree as an example of an unsuitable sale, a finding consistent with the separate May 2025 AWC FINRA accepted from Lerner individually
The scope of these findings suggests a systemic breakdown in supervisory controls at David Lerner Associates. Under FINRA Rule 3110 (Supervision), brokerage firms must maintain adequate systems to oversee their brokers’ recommendations and identify potential red flags of misconduct. When a firm sells hundreds of millions of dollars in illiquid proprietary products across thousands of customer accounts, the obligation to ensure suitability at every level becomes even more pressing.
Unsuitable Recommendations and Illiquid Private Placements
The allegations against Daniel Lerner center on several recognized forms of broker misconduct violations. Understanding these categories can help investors evaluate whether their own accounts were affected.
Unsuitable Recommendations and FINRA Rule 2111: Under FINRA Rule 2111 (Suitability), brokers are required to have a “reasonable basis” to believe that a recommended investment is suitable for the client’s unique financial situation, age, and risk tolerance. For conduct after June 30, 2020, the SEC’s Regulation Best Interest (Reg BI) established an even higher “best interest” standard for broker-dealers.
Illiquid Private Placements and Elder Investors: Private placements like Energy 11 LP are not traded on public exchanges, meaning investors may be unable to sell or redeem their positions when they need funds. By design, illiquid proprietary products pose particular risks for older and conservative-income investors.
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How Meyer Wilson Werning Can Help
Investors who lost money in Energy 11 LP, Energy Resources 12 LP, or other proprietary products recommended by Daniel Todd Lerner at David Lerner Associates may be able to recover their losses through arbitration. FINRA arbitration is the primary forum for resolving disputes between investors and brokerage firms, and claims can be filed against both the individual broker and the firm.
Meyer Wilson Werning represents investors nationwide who have been harmed by unsuitable recommendations and private placement misconduct. With more than 75 years of combined experience and over $350 million recovered for our clients, our team is dedicated to holding negligent firms accountable. Contact us today for a free and confidential consultation to discuss your path to recovery.
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Frequently Asked Questions
Who is Daniel Todd Lerner of David Lerner Associates?
Daniel Todd Lerner (CRD# 1255769) is a long-serving financial advisor at David Lerner Associates, Inc. According to FINRA BrokerCheck, he has accumulated 20 disclosures, including complaints involving allegedly unsuitable recommendations of proprietary energy investments such as Energy 11, L.P. and Energy Resources 12, L.P. to conservative and elder investors.
What are the allegations against Daniel Lerner related to Energy 11 LP and other proprietary funds?
Customer complaints allege that Lerner recommended concentrated positions in Energy 11, L.P., Energy Resources 12, L.P., and related proprietary energy funds that were unsuitable for his clients’ risk tolerance and investment objectives. Specific allegations include misrepresentation, breach of fiduciary duty, and omissions regarding the liquidity constraints and risks of these products.
How can investors recover losses from Energy 11 and Energy 12 sold by David Lerner Associates?
Investors who suffered losses in these products may be able to pursue arbitration claims against Lerner and David Lerner Associates. A successful claim typically demonstrates that the investments were inconsistent with the investor’s age, risk tolerance, and liquidity needs, and that the firm failed to properly supervise the sales.
Why are illiquid energy private placements like Energy 11 LP often unsuitable for elder investors?
Illiquid private placements are long-term, difficult-to-sell investments that can be inappropriate for elder investors who need access to savings for healthcare or living expenses. When distributions are cut or underlying assets decline, investors may face both income loss and principal erosion with no realistic exit strategy.
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