Articles Tagged with David Lerner Associates

shutterstock_12144202-300x200According to BrokerCheck records financial advisor Robert Cavanagh (Cavanagh), currently employed by David Lerner Associates, Inc. (David Lerner) has been subject to at least five customer complaints.  According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Cavanagh concern allegations of unsuitable investments, breach of fiduciary duty, and fraud.

In July 2018 a customer complained that Cavanagh engaged in unsuitable investments, made misrepresentations, breached his fiduciary duty, was negligent, and committed fraud in connection with Puerto Rico and Rochester Bond Fund.  The customer alleged $100,000 in damages and the claim is currently pending.

In July 2017 a customer alleged unsuitable investments and misrepresentations and omissions of information causing $160,000 in damages.  The claim is currently pending.

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shutterstock_93851422The securities lawyers of Gana Weinstein LLP are investigating investors that were recommended to invest in Spirit of America Energy Fund (Stock Symbol: SOAEX) underwritten and promoted by David Lerner Associates. The Fund went public in July 2014 and since that time has fallen from about $10 to only about $4.33 per share, an over 50% loss in less than a year and half.

The Spirit of America Energy Fund states that its investment strategy “seeks to achieve its investment objective by investing at least 80% of its assets in energy and energy related companies Exploration, production and transmission of energy or energy fuels. The Fund will invest in Master Limited Partnerships (MLPs) that derive the majority of their revenue from energy infrastructure assets and energy related assets or activities…”

In the case of Spirit of America Energy Fund as of May 2015, over 90% of the fund was invested in oil and gas related MLPs. In addition, investors recommended to invest in the fund may have to pay a high 5.75% load fee and 1.55% annual expenses. In addition, from information available on the Spirit of America Energy Fund website, for the year ended 2014, over 93% of distributions received by investors are a return of their capital and only 6% of all distributions was a taxable dividend. Thus, part of the reason that the fund has declined so rapidly may possibly be attributable to the fund simply repaying investors from their own funds rather than through funds generated by investments.