Martin Lerner Fined By FINRA, Tied To David Lerner Investor’s Misrepresentation Complaint

FINRA suspended securities broker Martin Lerner [CRD: 871038, Boca Raton, Florida], and investors complained about him, based on publicly available information on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Martin Lerner worked for David Lerner Associates Inc. from April 22, 1994, through May 31, 2024, where he served in registered and principal capacities. Investors should review the information below to find out more about disclosures involving Martin Lerner and issues that may have affected investors.

FINRA Sanctioned Lerner For Supervisory Failures

Specifically, on May 20, 2025, FINRA issued Case: 2019063686212 sanctioning Martin Lerner for supervisory violations. Specifically, Lerner was suspended for one month from associating with any FINRA member in all principal capacities and fined $10,000. Evidently, FINRA alleged that Lerner failed to reasonably supervise recommendations of certain illiquid investment products.

According to FINRA, from January 2015 through November 2019, Lerner did not adequately oversee sales of two proprietary, illiquid limited partnerships while associated with David Lerner Associates Inc. FINRA stated that these products carried a high degree of risk and were intended only for investors with long-term horizons and higher risk tolerances. The regulator alleged that Lerner ignored warning signs, including sales to senior or unsophisticated investors and transactions following changes to investor risk profiles that enabled the purchases. FINRA concluded that Lerner violated FINRA Rules 3110 and 2010 related to supervision and ethical standards.

David Lerner Associates Inc. Investor Accused Martin Lerner Of Breach Of Fiduciary Duty, Unsuitable Advice

Also, a David Lerner Associates Inc. client filed FINRA Arbitration No. 21-01087 about Martin Lerner. Mainly, the client alleged that Lerner made misrepresentations, breached his fiduciary duty, and made unsuitable recommendations. Because of this, the client allegedly incurred damages connected to private placements and mutual funds. Consequently, on April 20, 2022, David Lerner Associates Inc. settled this matter by paying the client $400,000 in damages.

Lerner Disclosed Misrepresentation Allegations By David Lerner Associates Inc. Client

Notably, a client of David Lerner Associates Inc. disputed Martin Lerner’s sales practices by filing FINRA Arbitration No. 20-03589. Allegedly, Lerner made unsuitable recommendations and made misrepresentations and omissions. It appears that Lerner caused the client to sustain damages relating to mutual funds and private placements. Therefore, David Lerner Associates Inc. opted to settle the matter on April 24, 2023, by compensating the client in the amount of $23,000.

Were You Impacted By Financial Advisor / Securities Broker Martin Lerner?

Did you experience losses because of Martin Lerner? You can contact Soreide Law Group online or at (888) 760-6552 and consult with a securities attorney regarding a potential recovery of your investment losses. Soreide Law Group has recovered losses for clients located throughout the United States. Also, the firm represents investors on a contingency fee basis and advances all costs. Lerner and brokerage firms Lerner worked for deny allegations of sales practice violations.