Daniel Lerner: FINRA Fines David Lerner Advisor over Energy LPs

White Plains, New York financial advisor Daniel Lerner (CRD# 1255769) was recently sanctioned and suspended in connection with allegations that he recommended an energy limited partnership without reason to believe it was suitable. Financial Industry Regulatory Authority records show that he is registered as a broker with David Lerner Associates.

A Letter of Acceptance, Waiver, and Consent (No. 2019063686213) describes FINRA’s disciplinary action against Mr. Lerner. Filed in May 2025, it states that he “recommended that a customer invest in an illiquid, proprietary limited partnership without having a reasonable basis to believe that the investment was suitable for the customer based on her investment profile.”  The product in question, according to the Letter, was an LP “former to acquire and develop hydrocarbon-producing properties.”

The LP’s prospectus described investments in it as highly risky, speculative, and long-term, and only suitable for investors who could assume that risk. The customer in question, meanwhile, was allegedly “a 92-year old retiree who had been a client of Lerner’s for over 20 years when Lerner recommended that she purchase $60,000 of the limited partnership.” His recommendation led her to invest about 25% of her liquid net worth in the product, and was unsuitable for her profile. FINRA found that his conduct violated FINRA Rules 2111 and 2010. As a result, it suspended him for two months and ordered him to pay a fine of $5,000.

A September 2022 report by InvestmentNews offers context on the disciplinary action against Mr. Lerner. According to the report, FINRA launched an investigation into his recommendation of investments in Energy 11 and 12, two private placements, as well as a mutual fund, Spirit of America Energy Fund. “I vehemently disagree with FINRA’s allegations,” Mr. Lerner wrote in a statement regarding the investigation. “I take my regulatory responsibilities, and my responsibilities to my clients, with the utmost degree of seriousness.”

According to the Financial Industry Regulatory Authority, Daniel Lerner holds 39 years of securities industry experience. Based in White Plains, New York, he has been registered as a broker with David Lerner Associates since 2000. His past registrations include Prudential Securities, Charles Schwab & Company, ML Stern & Company, Bear Stearns & Company, SSH Securities, and David Lerner Associates. His credentials include the passage of five securities industry qualifying exams: the General Securities Principal Examination, or Series 24; the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7; the Municipal Securities Representative Examination, or Series 52; and the Uniform Securities Agent State Law Examination, or Series 63. He holds 22 state licenses. (Information current as of May 21, 2025.)

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