Daniel Todd Lerner (CRD# 1255769), a long-serving financial advisor at David Lerner Associates, is facing increased legal and regulatory scrutiny following a wave of investor complaints tied to his recommendations of risky energy-sector investments. These include Energy 11, Energy 12, and the Spirit of America Energy Fund—all proprietary products offered by his broker-dealer.
Over the past several years, Lerner has amassed more than a dozen customer disputes, with multiple cases ending in settlements or arbitration awards. In May 2025, the Financial Industry Regulatory Authority (FINRA) formally sanctioned him for making unsuitable investment recommendations to a senior investor.
FINRA Suspension: Unsuitable Advice to a 92-Year-Old Investor
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According to FINRA’s 2025 disciplinary action, Lerner recommended that a 92-year-old retiree place approximately 25% of her liquid net worth into a non-traded, illiquid oil and gas limited partnership—an extremely risky and complex investment vehicle. FINRA found that Lerner failed to ensure the investment was suitable, particularly considering the client’s age, financial profile, and need for liquidity.
As a result, Lerner received a two-month suspension (June 16 – August 15, 2025) and was fined $5,000. His employer, David Lerner Associates, was ordered to pay $3,600 in restitution to the client.
This case is emblematic of broader concerns surrounding the firm’s longstanding strategy of promoting proprietary, commission-heavy products that may not serve the best interests of investors.
Growing List of Investor Complaints and Settlements
Between 2020 and 2022 alone, at least 13 investor complaints were lodged against Lerner. These included allegations of:
- Unsuitable investment recommendations
- Misrepresentation or failure to disclose risks
- Excessive concentration in speculative energy funds
Several of these complaints led to significant financial outcomes for harmed investors:
- In February 2022, FINRA awarded $23,480 to a customer for Energy 11-related claims.
- In May 2022, an arbitration claim settled for $82,500.
- Other claims filed sought damages ranging from $170,000 to more than $500,000.
To understand more about the legal remedies available, visit this investor notice on Energy 11 loss recovery options. Investors should also be aware that David Lerner Associates was fined $1 million for its role in the sale of Energy 11 and Energy 12, indicating systemic supervision issues.
The Danger of Energy 11 and Similar Products
Energy 11 and Energy 12 are non-traded limited partnerships marketed for their potential income and exposure to oil and gas markets. However, they are highly illiquid, complex, and inappropriate for many retail investors. Key investor risks include:
- No secondary market to resell the investment
- High upfront fees and commissions, often exceeding 10%
- Dependence on energy market performance, which can be volatile and unpredictable
- Minimal transparency and control for investors
Such products may be suitable only for sophisticated investors with a high risk tolerance and no immediate need for liquidity. Selling them to retirees, conservative investors, or those needing income is often inappropriate and can justify legal action.
What Investors Can Do Now
If you or a loved one invested in Energy 11, Energy 12, or related products on the advice of Daniel Lerner, you may be entitled to recover your losses through FINRA arbitration. This is a confidential dispute resolution process specifically designed for securities claims, offering an alternative to traditional courtroom litigation.
Grounds for legal recovery can include:
- Unsuitable investment advice
- Misrepresentation or failure to disclose key risks
- Breach of fiduciary duty
- Lack of proper supervision by the broker-dealer
You may still have time to file a claim—even if the investment occurred several years ago.
Contact Haselkorn & Thibaut Today
Haselkorn & Thibaut, P.A. is a national law firm that focuses exclusively on representing investors. With over 50 years of combined legal experience and a 98% success rate in securities arbitration, the firm has recovered millions for clients harmed by financial advisor misconduct, broker negligence, and investment fraud.
📞 Call 1-888-885-7162 now to schedule a confidential consultation
🌐 Or visit investmentfraudlawyers.com for more information
You have options. Don’t let financial misconduct go unchallenged.
Daniel Lerner & Energy 11: Investor Case Summary & FAQ
Who is Daniel Lerner?
He is a registered broker with David Lerner Associates who has faced multiple investor complaints involving energy-related investment products. In 2025, FINRA sanctioned him for making an unsuitable recommendation to a 92-year-old client.
What investments are involved?
Lerner has been tied to sales of proprietary investments, including:
- Energy 11 and Energy 12 — non-traded oil and gas partnerships
- Spirit of America Energy Fund — an energy-focused mutual fund also sold by David Lerner Associates
What are the complaints about?
The most common allegations include:
- Selling unsuitable investments to elderly or conservative clients
- Misrepresenting or omitting risks associated with illiquid energy products
- Concentrating client portfolios in speculative and complex investments
Have any investors won compensation?
Yes. Several claims have already resulted in awards and settlements, ranging from $23,000 to over $80,000. Total recoveries reportedly exceed $1.6 million. Learn more in this Energy 11 investor recovery guide.
Is the broker-dealer liable too?
Absolutely. David Lerner Associates was fined $1 million by FINRA for its supervision failures and questionable sales practices involving Energy 11 and 12.
What should I do if I invested through Daniel Lerner?
- Collect your account statements and correspondence
- Review your investment risk tolerance and goals
- Consult a securities lawyer to evaluate whether your rights were violated
How can I pursue a claim?
📞 Call Haselkorn & Thibaut at 1-888-885-7162
🌐 Or visit investmentfraudlawyers.com for a free consultation
