Daniel Lerner Suspended by FINRA for Alleged Unsuitable Investment Recommendation

Daniel Lerner (CRD #: 1255769), a broker registered with David Lerner Associates, has been suspended by FINRA, according to his BrokerCheck record, accessed on July 6, 2025. Read on to learn more about his alleged conduct as a broker.

FINRA Suspension

On May 20, 2025, Daniel Lerner consented to the entry of findings that he allegedly recommended an investment without a reasonable basis to believe it was suitable for his client’s investment profile in March 2019.

According to a Letter of Acceptance, Waiver & Consent (AWC), Daniel Lerner allegedly recommended an illiquid limited partnership which was allegedly formed with the purpose of acquiring and developing hydrocarbon-producing properties.

Its objectives allegedly included making distributions and potentially engaging in a liquidity event five-to-seven years after the termination of the offering, depending on the performance of its properties. The limited partnership’s prospectus allegedly described investments in it as being high-risk, speculative, and illiquid.

Customer A was allegedly a 92-year-old retiree with a moderate risk tolerance. Daniel Lerner allegedly recommended a $60,000 investment in the LP, representing approximately 25% of Customer A’s net worth.

The AWC concluded that these allegations constituted violations of FINRA Rules 2111 and 2010.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take into account investors’ financial goals when recommending investments. Brokers must consult the investor’s profile, which describes their tax status, risk tolerance, age, and financial situation.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Daniel Lerner consented to the following sanctions:

• Two-month suspension from associating with FINRA members

• $5,000 fine

His suspension began on June 16, 2025, and will end on August 15, 2025. You can read the full AWC here.

Investor Disputes

Three disputes, filed from January 2021 to March 2022, alleged that Daniel Lerner made unsuitable investment recommendations and misrepresented and/or omitted information related to investments. These disputes were settled for a total of $679,315.

Disputes filed on January 4, 2021, and April 29, 2019, named Daniel Lerner in allegations of failure to supervise, unsuitable investment recommendations, and misrepresentation. These disputes were settled for a collective $151,786.24.

On October 6, 2020, an investor named Daniel Lerner in allegations of fraud, unsuitability, and misrepresentation with regard to the client’s investment in Energy 11, LP. This dispute was settled for $918,750.

Denied Disputes

Firms can deny disputes without facing FINRA arbitration – “denials” simply mean that the firm denies their representative engaged in misconduct. Investors can still recover losses following a denial.

On December 10, 2024, an investor filed a dispute against Daniel Lerner alleging misconduct. The client sought $156,000 in damages.

In a dispute filed on January 22, 2021, an investor alleged that Daniel Lerner recommended unsuitable investments. They sought $100,000 in damages.

On October 16, 2020, an investor alleged that Lerner executed unauthorized transactions. The investor sought $170,000.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent methods to influence investors’ decisions. The misrepresentation or omission of material facts violates this rule.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. This includes appointing supervisors and providing them with Written Supervisory Procedures (WSPs).

FINRA Rule 3260

FINRA Rule 3260 forbids brokers from conducting discretionary trading outside of accounts approved in advance by their client and firm.

Daniel Lerner Background Information

Lerner has passed the following exams:

• Series 63 Uniform Securities Agent State Law Examination

• SIE Securities Industry Essentials Examination

• Series 7 General Securities Representative Examination

• Series 52 Municipal Securities Representative Examination

• Series 24 General Securities Principal Examination

He is a registered broker in 20 states.

Daniel Lerner has worked with the following firms:

• Prudential Securities Incorporated (CRD #: 7471)

• Charles Schwab (CRD #: 5393)

• M. L. Stern & Co. (CRD #: 8327)

• Bear, Stearns & Co. (CRD #: 79)

• SSH Securities (CRD #: 43593)

Kurta Law Can Help

If you worked with Daniel Lerner and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.