NEW YORK–()–National securities fraud law firm, KlaymanToskes (“KT”), announces its investigation into David Lerner Associates for the unsuitable concentration in proprietary products invested in non-traded Oil & Gas Investments offered exclusively to its clients. The concentrated investments include the Energy 11 LP, Energy Resource 12 LP, and Spirit of America Fund (NASDAQ:SOAEX). In addition to the precipitous loss in value, most of the interest payments received by investors are now considered return of capital.

According to securities attorney, Lawrence L. Klayman, “David Lerner Associates recommended proprietary products that were unsuitable for most conservative or retired investors.” According to the Energy 11 LP and Energy Resource 12 LP Prospectus and the Partnership Agreement with the Managing Dealer, the Managing Dealer receives a total of 6% in selling commissions and Dealer Manager Incentive Fees of an amount up to 4% of the gross proceeds of the common units sold based on the Partnership’s performance. Klayman adds, “Based on SEC Filings there was an incentive to recommend these proprietary products at the expense of investors.”

The investigation has been launched to determine whether, David Lerner Associates failed to supervise the sales and marketing of its proprietary products to risk averse investors, such as retirees or other conservative investors, that were seeking income and capital preservation. Furthermore, the investigation focuses on whether David Lerner Associates and its financial advisors misrepresented material facts relating to the risks associated with illiquid, concentrated investments in the Oil & Energy sector and the associated higher fees and costs.

The sole purpose of this release is to investigate investment recommendations provided by David Lerner Associates. Investors are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.

About KlaymanToskes

KT is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors throughout the world in large and complex securities matters. KT has recovered more than $200 million for investors in arbitration. KT has office locations in California, Florida, New York and Puerto Rico.


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