Lawrence Merl (CRD# 2443190), a former financial advisor affiliated with David Lerner Associates, has been the subject of multiple regulatory actions and customer disputes. His history of recommending complex, illiquid investments — including Energy 11, a high-risk oil and gas limited partnership — has led to serious concerns about financial advisor misconduct and broker-dealer negligence.
Background: Who Is Lawrence Merl?
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Mr. Merl was registered with David Lerner Associates from 1994 to 2022, during which time he marketed investment products to retail investors across the country. While he is no longer a registered broker, his record continues to attract scrutiny due to a pattern of complaints and regulatory sanctions.
These issues are not isolated incidents. Merl’s record includes multiple allegations of recommending high-commission, high-risk investment vehicles without proper due diligence or consideration for client suitability.
Regulatory Actions Involving Lawrence Merl
📌 2024 FINRA Action — Unsuitable Oil & Gas LP Recommendations
In a 2024 disciplinary action, the Financial Industry Regulatory Authority (FINRA) found that Merl recommended unsuitable oil and gas limited partnerships, including Energy 11, to at least four investor households between 2015 and 2017. The investments were complex and illiquid, and Merl allegedly failed to establish a reasonable basis for recommending them.
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Sanctions: Six-month suspension (October 2024 – April 2025)
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Fine and Disgorgement: $10,000 (deferred) plus over $153,000 in ill-gotten gains
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Nature of Violation: Violation of FINRA Rules 2111 and 2010
📌 2004 NASD Action — Illiquid REIT Sales on Margin
An earlier action by the National Association of Securities Dealers (NASD) (predecessor to FINRA) found that Merl inappropriately sold illiquid non-traded REITs on margin to unsophisticated clients. These transactions exposed clients to substantial risk, often without full disclosure.
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Sanctions: $52,000 fine (including disgorged commissions) and five-month suspension
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Red Flag: Failure to assess suitability and risk exposure
Customer Disputes Related to Energy 11 and Similar Products
📌 2021 — Pending FINRA Arbitration
A pending arbitration claim accuses Merl of making unsuitable recommendations and failing to disclose critical investment risks related to oil and gas partnerships, including Energy 11. The claimant alleges that the investments were inappropriate for their financial profile and goals.
📌 2020 — Arbitration Claim Seeking ~$1 Million
An earlier claim seeks nearly $1 million in damages and involves allegations of misrepresentation, omission of material facts, and breach of fiduciary duty. The claim centers on Merl’s recommendation of Energy 11 — an investment known for its illiquidity and volatility in energy markets.
Investor Risks: Energy 11 and Similar High-Risk Products
Energy 11 is a non-traded limited partnership that invests in oil and gas assets. While marketed for its income potential, these types of products carry numerous risks:
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Lack of Liquidity: Investors cannot easily sell or exit the investment
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High Fees and Commissions: Often exceeding 7–10%, which erodes investor returns
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Volatility: Tied to unpredictable energy markets
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Complex Structures: Difficult for retail investors to fully understand
When financial advisors fail to adequately explain these risks — or worse, recommend them to conservative investors — it may constitute investment fraud.
For more details, see:
🔗 Energy 11 Investor Notice on Loss Recovery Options
🔗 David Lerner Associates Fined $1M – Energy 11 and 12 Loss Recovery Options
Legal Options for Investors
If you suffered losses investing in Energy 11 or other complex products based on Lawrence Merl’s recommendations, you may be entitled to recover your losses through FINRA arbitration. This process does not require filing a lawsuit in court and typically resolves faster and more privately than litigation.
You may have grounds for a claim based on:
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Unsuitable investment recommendations
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Failure to disclose material risks
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Misrepresentation
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Lack of due diligence by the broker or firm
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Breach of fiduciary duty
FINRA holds brokers and broker-dealers to strict standards. Even if an investment was not outright fraudulent, it may still be considered unsuitable if it did not align with your investment profile and objectives.
Contact Haselkorn & Thibaut
Haselkorn & Thibaut, P.A. is a national law firm focused exclusively on helping investors recover losses from broker misconduct, negligent investment advice, and fraudulent schemes. With over 50 years of collective experience and millions recovered, our team is ready to evaluate your claim.
📞 Call today at 1-888-885-7162 or
🌐 Visit investmentfraudlawyers.com for a free consultation
