Martin Lerner: FINRA Recommends Sanction Against David Lerner Advisor

Boca Raton financial advisor Martin Lerner (CRD# 871038) is under investigation for allegedly recommending unsuitable Energy 11 and Energy 12 investments and for failing to supervise sales of the same. Financial Industry Regulatory Authority records show that he is currently registered as a broker with David Lerner Associates.

Mr. Lerner’s BrokerCheck report discloses FINRA’s investigations into his conduct. Filed in March 2024, it states that FINRA has made a preliminary determination to recommend disciplinary action against him. The proposed action would alleged that he failed to supervise sales of investments in Energy 11 LP and Energy 12 LP; that he made unsuitable recommendations of investments in the same; and that he caused his member firm to maintain inaccurate books and records. In a statement included with the disclosure, he wrote that he “strongly” disagrees with FINRA’s proposed allegations. “I have meritorious defenses which I intend to vigorously pursue,” he writes, “including that: I fulfilled my supervisory obligations; my recommendations were suitable and consistent with the firm’s compliance protocols; and I followed all applicable procedures for maintaining accurate books and records.”

Other disclosures on his BrokerCheck report concern investor complaints against him. The most recent, filed in 2021, alleged that as a representative of David Lerner Associates, he recommended unsuitable investments, misrepresented and omitted material facts, and breached his fiduciary duty. In 2022 the complaint reached a settlement of $400,000.

A second investor complaint, filed in 2020, alleged that as a David Lerner representative, he misrepresented and recommended unsuitable investments in SOAEX and Energy 12. In 2023 the complaint reached a settlement of $23,000.

According to the Financial Industry Regulatory Authority, Martin Lerner holds 38 years of securities industry experience. Based in Boca Raton, Florida, he has been a broker with David Lerner Associates since 1994. His credentials include the passage of eight securities industry qualifying exams: the General Securities Principal Examination, or Series 24; the Municipal Securities Principal Examination, or Series 53; the Registered Representative Examination, or Series 1; the Municipal Securities Representative Examination, or Series 52; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7TO; and the Uniform Securities Agent State Law Examination, or Series 63. He is licensed in Connecticut, Florida, Nevada, New Jersey, New York, and North Carolina. (Information current as of March 31, 2024.)

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