David Lerner Faces FINRA Sanctions for Regulatory Violations

Financial Industry Regulatory Authority (FINRA) BrokerCheck reveals disclosures about securities broker David Scott Lerner (CRD#: 1883553, Hauppauge, New York). Lerner has over 33 years of experience in the securities industry and has been associated with multiple firms, including Madison Global Partners LLC and Network 1 Financial Securities Inc. Recent disclosures highlight regulatory actions and client disputes concerning his professional conduct.

Regulatory Action Alleged Unauthorized Activities

On July 25, 2024, FINRA sanctioned Lerner for violating recordkeeping rules. The regulatory body found that between June and September 2021, Lerner used a personal email account to conduct securities-related business, circumventing his firm’s communication policies. By failing to provide copies of these emails to Network 1 Financial Securities Inc., he caused the firm to maintain incomplete records, violating Section 17(a) of the Securities Exchange Act of 1934 and FINRA Rules 4511 and 2010.

As a result, FINRA imposed a $5,000 fine and a one-month suspension from associating with any FINRA member in any capacity, effective August 19, 2024, through September 18, 2024

Lerner accepted the sanctions without admitting or denying the findings through a Letter of Acceptance, Waiver, and Consent (AWC), resolving the matter without further disciplinary proceedings.

Client Disputes Alleged Unauthorized Trading, Unsuitable Recommendations

In addition to regulatory actions, Lerner has a history of client disputes. Notably:

• June 14, 2000: A client alleged unauthorized trading and failure to execute a liquidation order, requesting $1,000,000 in damages. The dispute settled for $350,000.
• April 25, 2008: A client accused Lerner of unsuitable investment recommendations between 2004 and 2006. The matter settled for $45,000.
• May 26, 2000: A client claimed Lerner failed to execute sell orders for two stocks, requesting $23,256. The claim settled.

Contact Soreide Law Group About Lerner

Looking for more information about David Lerner? If so, reach out to Soreide Law Group online or call (888) 760-6552 to speak with a securities lawyer. Soreide Law Group works on a contingency basis, advances all costs, and helps clients throughout the United States with recovering losses from sales practice misconduct. Lerner and the firms he worked for deny accusations of sales practice violations.