Florida Retiree Pursues Six-Figure Energy 11 Investor Fraud Claim Against David Lerner Associates

Florida Energy 11 Investor Alleges Unsuitability, Misrepresentations and Omissions

A senior investor says that a David Lerner Associates broker unsuitably recommended that she invest in Energy 11, LP. This non-public limited partnership has been exclusively marketed and sold by the broker-dealer to its clients, costing many of them significant investment losses. Many of these customers should never have been advised to purchase this oil and natural gas private placement. 

Our Energy 11 investment fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this retiree in her Financial Industry Regulatory Authority (FINRA) arbitration claim to pursue damages. If you are an investor who suffered losses in Energy 11 LP, contact SSEK Law Firm at (813) 560-2992 in Florida or, throughout the US, call (800) 259-9010 today.

Senior Customer’s Account Was Heavily Invested in Energy 11

The claimant is an unsophisticated, inexperienced investor who entrusted David Lerner Associates with money she worked a lifetime to earn. This Bay Harbor, Florida retiree relied on the broker-dealer and its registered representative to properly manage her brokerage account and trusted that they would keep their promise not to expose her to undue risk. Instead, a David Lerner Associates broker recommended that she heavily invest in an Energy 11 private placement.

Set up to acquire and develop oil and gas properties, Energy 11 is highly illiquid, can be very volatile, and is not a low-risk investment. It is unsuitable for many retail investors, retirees, and inexperienced investors. 

This private placement pays high fees/commissions to the brokers that sell it. Even as this claimant’s account plunged in value, the broker continued to advise this elderly investor to stay with Energy 11 by reassuring her that the situation would improve. 

Misrepresentations and omissions were clearly made, and David Lerner Associates was grossly negligent in its failure to properly supervise the investor’s account and its registered representative. Churning and breach of fiduciary are also alleged, as was a breach of contract and warranties and the violation of federal securities laws. 

What is Energy 11, LP?

This oil, gas, and energy investment has raised over $350M from investors. The proceeds from Energy 11 private placement securities were invested in both non-operated working interests in over 200 producing wells and in over 240 future development locations in North Dakota. 

Like other oil, gas, and energy investments, this investment has experienced much volatility in recent years, especially prior to and during the COVID-19 pandemic. 

Energy 11’s prospectus notes that as the investment’s exclusive manager, David Lerner Associates receives 6% in commissions in addition to a contingent incentive fee. The broker-dealer has reportedly earned many millions of dollars in both fees. 

Seasoned Securities Fraud Attorneys

SSEK Law Firm represents investors from all over the United States in their FINRA arbitration claims against David Lerner Associates involving Energy 11, as well as  Energy Resources 12. These oil, gas, and energy investments are highly volatile and aren’t suitable for every investor’s investment portfolio.

If you were a customer of David Lerner Associates and suffered losses, contact us today so that we can help you explore your legal options.

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