Martin Lerner Facing a FINRA Investigation

Martin Lerner (CRD #: 871938), a previously registered broker with David Lerner Associates, is the subject of a regulatory investigation. This disclosure appears on his BrokerCheck record, accessed on July 2, 2024. Keep reading if you have questions regarding his alleged conduct. 

FINRA Investigation 

On March 18, 2024, FINRA made a preliminary determination to recommend disciplinary action be brought against Martin Lerner alleging violation of FINRA Rule 3110 and FINRA Rule 2010 for failing to supervise the sales of Energy 11, L.P. and Energy 12, L.P. These recommendations were allegedly unsuitable. 

Investor Disputes 

Two investor disputes on Martin Lerner’s record allege he recommended unsuitable investments. These disputes were collectively settled for approximately $423,000. There are four other settled disputes on his record. 

FINRA Rule 2111 – Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. Non-traded energy investments like Energy 11, L.P. and Energy 12, L.P. are often unsuitable due to their high risk. 

Failure to Supervise 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 2010

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

Background Information 

Martin Lerner has passed the following exams: 

• Series 63 Uniform Securities Agent State Law Examination 
• Series 7TO General Securities Representative Examination 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 
• Series 52 Municipal Securities Representative Examination 
• Series 1 Registered Representative Examination 
• Series 53 Municipal Securities Principal Examination 
• Series 24 General Securities Representative Examination 

He is a registered broker with two firms: David Lerner Associates (CRD #: 5397) and First Investors Corporation (CRD #: 305). 

Kurta Law Can Help 

If you have worked with Martin Lerner and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors 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. Do not let securities fraud go unchecked. Start your recovery process today.