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David Lerner Associates, Inc.

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Reviews David Lerner Associates, Inc.

David Lerner Associates, Inc. Reviews (6)

Total Incompetence and Deceitful and Lying Employees
If I could give a zero to this inept and corrupted firm I would. I started out with DL many years ago with a good advisor. I was looking for muni bonds where I can protect principal and gain dividends to invest. With the dividends, I reinvested into various offerings. One was the APLE REIT which was not liquid. I had time on my side so I did not mind. I asked when APLE would become liquid and was "told 3-5 years". Well 3-5 years turned into greater than 10 with calls for class action suits. Had I’d been properly informed of this illiquid indefinite period I would have NEVER invested, so I was stuck with no redemption way out! My advisor left and I went through another keeping my account consistent waiting for the liquidation day. That counselor left and then in came the devil. My bonds came due and I foolishly invested in SOAEX, the energy funds. This dude played on the fact I wanted a liquid fund with dividends so I went with the flow, not realizing he made a killing on commissions and fees which are enormous for the fund, but I had a plan in place, a retirement plan that once I retired I'd pull out. Finally APLE became liquid and I sold, long after the 5-year period. When my 1099 statement came (and David Lerner is ALWAYS LATE with the 1099's), I noticed the cost basis was 0 for the sale, so that was screwed up. I paid $11.00 per share but because it was not liquid they put in the 1099 that I paid zero, ZERO DOLLARS. It took a few calls to DL and they had no clue how to clean that up on their forms nor would they. THEY JUST DO NOT CARE! My Investment Counselor washed his hands from this stating "not my problem" so luckily I kept my original sales conformations and used them otherwise I'd be in debt to the IRS for thousands. Calls to the IRS suggested I do that, which were helpful, but I was still audited because the computers pick up cost and sell, so it took time to clean up that mess.

Now comes the SOAEX...I decided I had enough of DL, so I wanted to cash out. I told my Investment Counselor, Mr. Michael Karp on March 3rd 2020 to sell ALL my holdings, He asks me a zillion times "why" I told him "Just do it". After two weeks I find out he did not so I call him and he claims "I never told him to sell we spoke about a few things but I never mentioned sell", as he tried to cover up from his gaff with a blatant lie. Meanwhile the fund tanked because of pandemic and energy being depressed so I'm out money. He then puts account on hold because of an upcoming reverse split which would cost me more money. I was never notified of a reverse split as there is usually correspondence to the investor that a split (reverse or other) is coming. Finally after threatening legal action he released my account from “hold” and sells on March 17th, 2020, but his delay and incompetence costs me several thousands. After filing a complaint with the compliance manager (Alan Holman) it turned into a "he said she said" which is completely bogus and the Compliance Manager washed his dirty hands from this. I have phone records and know when I made the calls and what was discussed in the conversations so I and my advisors assistant (Claudia) knew I needed to sell. I filed a complaint with the SEC and they are still waiting from a response from DL on this matter.

David Lerner has been in the news for all the wrong reasons. They prey on the uninformed, they sell non-liquid funds with the promise of liquidation that never happen unless a class action suit happens. They sell funds of high loads and keep reverse splitting to make the funds look investment worthy. The sales "counselors" only care about commissions and not the investor.

If this keeps one potential investor form ever considering investing with DL, I've been successful in recovering my loss. My advice, do your homework first, google David Lerner, and see all the legal action taken against them and look for someone clean and trustworthy

David Lerner; They're Hallmark is Neglect and Malfeasance.
For twelve years I've held investments with this company and not only haven't they shown any increase in revenue, but I have lost 65% of my revenue. I plan on bringing civil litigation against them as well as filing as many complaints with the boards that oversee their operation as possible. Including the Attorney General of New York State for their negligent actions. Their on-going unresponsiveness to clients, this client's attempts to get in touch with them. They are arrogant, supercilious, and elitist. If you're not a millionaire you won't rate a call back. In the last year I've lost over 50% of my portfolio and am unable to get someone on the phone. Never, never, invest with this company.

May 05, 2020

STAY AWAY AND DON`T BELIEVE THE PITCH OF INCOME
Before giving your money check their record on the Apple Reits.

Their statements showed a balance and income that never existed.

At the end of fund their was a class action law suite. Investors lost big time.

The only difference between Madoff and Lerner is that one is in a cell where he belongs the other should be in cell next to him.

Check out David losing his licence during this time. Why do you think ?

Revdex.com:I have reviewed the response made by the business in reference to complaint ID# [redacted], and have determined that my complaint has NOT been resolved because:
 
[Your Answer Here]
 I believe the response from David Lerner stating there was no merit for this claim was completely inaccurate. In their response they state that we acknowledged the course of action which in my letter clearly explains that after the representative misled us and allowed us to sign all the documents to transfer the monies only then did he inform us that there was a 3.5% fee for the transaction, at which time I clearly told him with my mother as a whitness that this 3.5% fee was a deal breaker and I instructed him to close out the fund and send us a check for the full amount of the fund. The only mistake we made was not to have the documents that were signed prior to the representative telling us about the 3.5% fee destroyed. The reply also states that on more then 1 occasion we acknowledged this course of action which is completely inaccurate, as my letter indicated when we had not received a check for 2 weeks I called the representative to ask him where the check was, not had he proceeded with the transaction. During this call the representative indicated the fund was increasing in value and he was trying to optimize the amount of money that the existing fund could be sold for, and my response was fine as long as the fund is sold within 1 week. Another occasion when I clearly reitterated my direction to sell the fund was when my mom received a letter indicating the fund had been sold and this new fund with the 3.5% commision had been purchased against my direction. Again this was reaffirmed when I spoke to the representatives manager who insisted he had to speak with my mother and when I conferenced her in she told the representatives manager that I had directed the representative to sell the fund affirming the direction I had given the representative.
In summary the David Lerner representative misled us into moving the monies from one fund to the other without indicating that there was a 3.5% charge until all the documents had been signed, after he told us about the 3.5% fee I clearly told him this was a deal breaker and that I wanted to close out the account and get a check sent to my mom. The representative then processed the transaction 3 weeks later in order for him to get his 3.5% commision. I have since closed out the account at a loss of this fee because of the unethical business practices from the firm.
 
 
 
 
In order for the Revdex.com to appropriately process your response, you MUST answer the question above.Sincerely,[redacted]

Review: David Lerner Associates offered a high yield REIT program at investment seminars throughout US. I bought into program but over time noticed the principal amount of my investment was being withheld from me- they were only allowing me liquidity access to the monthly dividend portion of my total investment. In addition, the monthly statements were not accurate- assuming a $10-$12 per share price as of 2012 nowhere near today's date of 2014.

After many attempts at contacting the firm, they have returned with more excuses, delays, and even hostility.

I am seeking action to have my full funds returned to me as this firm is not 100% transparent with their clients and does not allow clients the option of cashing out their investment.Desired Settlement: Full Refund of initial investment

Business

Response:

David Lerner Associates, Inc. (“DLA” or “Firm”) is in receipt of the Revdex.com’s ("Revdex.com") correspondence dated April **, 2014. DLA acknowledges [redacted]’s frustration with his inability to liquidate his Apple REIT Nine, Inc. (“Apple Nine”) position. If any of DLA’s attempts at resolving [redacted]’s concerns were perceived as hostile or evasive that was not the intent. DLA takes pride in the personal relationships it establishes with clients. DLA’s goal has, and always will be, to help its clients build and preserve their assets.

Firm records indicate that [redacted], purchased [redacted] units of Apple Nine on August **, 2010 and subsequently accumulated an additional [redacted] units through the Apple Nine Dividend Reinvestment program. [redacted] submitted an Apple Nine Unit Redemption Request on November **, 2013, however, Apple Nine had previously suspended the Unit Redemption Program June **, 2013.

•DLA is not affiliated with Apple Nine or its merged entity Apple Hospitality REIT, Inc. (“Apple Hospitality”)

•DLA is a separate and distinct entity and has no role in the decisions and actions of Apple Nine or Apple Hospitality.

•The Apple Nine prospectus, which was provided to [redacted] prior to his purchase of Apple Nine, and the Investor Acknowledgement of Risk Form [redacted] executed at the time of purchase, demonstrate [redacted] was aware of and understood the risk of illiquidity.

For background, Apple Nine is an illiquid, unpriced, SEC reporting, non-traded real estate investment trust for which DLA served as the exclusive managing dealer until the program closed. Apple Nine is an entirely separate and independent company from DLA and, as a separate company, it follows the terms of its prospectus. DLA’s only affiliation with Apple Nine was as the exclusive selling agent of Apple Nine shares.

Prior to the purchase of Apple Nine, [redacted] executed an “Investor Acknowledgment of Risk Form” where he acknowledged, “Prospective shareholders should view the REIT shares as illiquid and must be prepared to hold their investment for an indefinite length of time. There may be limited liquidity after one (1) year, subject to the provisions of the Unit Redemption Program detailed in the prospectus and not, in any event, guaranteed. Unit holders seeking to redeem their shares during the first three (3) years of ownership will be eligible to receive a maximum redemption equal to 92% of the shareholder’s purchase price, exclusive of dividends/distributions. The Company expects that within approximately seven (7) years from the initial closing, it intends to either: (i) cause the shares to be listed on a national securities exchange or quoted on NASDAQ National Market System, (ii) dispose of all its properties in a manner which will permit distribut ions to shareholders of cash, or (iii) merge, consolidate or otherwise combine with a real estate investment trust or similar investment vehicle. However, Apple REITs is under no obligation to take any of these actions, and these actions, if taken, might be taken after seven years from the initial closing.”

On June **, 2013 the Apple REITs announced to their respective shareholders that their respective boards of directors had authorized the evaluation of a potential consolidation transaction in which Apple REIT Seven, Inc., Apple REIT Eight, Inc. and Apple Nine would be combined. In view of the potential consolidation transaction, the Apple REITs (not DLA) suspended their unit redemption programs. On February **, 2014 the Apple REITs approved the Agreement and Plan of Merger and on March *, 2014 the mergers became effective and the Apple REIT’s merged into Apple Hospitality, subject to the satisfaction of certain customary closing conditions.

Presently, due to the illiquidity of Apple Hospitality, DLA will not be able to resolve this matter to [redacted]’s satisfaction. DLA does not know if or when the shares of Apple Hospitality will become liquid and DLA will not be made aware of this information until it is announced by Apple Hospitality. DLA will be in contact with [redacted] as soon as Apple Hospitality announces its intentions concerning a potential liquidity event. The Firm is confident that this response addresses your correspondence.

###-###-#### [redacted]

Review: To whom it may concern

From [redacted]

Subject: David Lerner associates failure to execute sell directive Account #[redacted]

Date 11/**/15

On or around September [redacted] 2015 LeFranc J[redacted] a representative for David Lerner associates had made an appointment to meet with myself and my 82 year old mother to discuss an investment she had inherited from her son [redacted] who passed away on January [redacted] 2015. When Mr. J[redacted] arrived he started talking about moving from the existing fund Apple Hospitality to another fund (Cohen and Steers) that he felt was a better investment with lower risk. The move to the new fund seemed to make sense, and I had my mother sign the necessary documents to move the money into the new fund, and after the documents were signed by my mother Mr. J[redacted] informed us that there would be a 3.5% fee to move the money into the new fund. At this time I told Mr. J[redacted] that this fee was a deal breaker and that I wanted to liquidate the fund and close the account. At this time he understood the direction, however, he recommended to wait a week or two to close the fund because the fund was actually increasing in value at this time and he would try to maximize the sale of the fund by timing the sale targeting a $19.30 selling price. At this time I thanked him for his help and he left.

On or around October **, 2015 I followed up with Mr. J[redacted]s asking him why we had not received a check and he indicated that the fund was still increasing and I instructed him to sell within the next week. Two weeks later on October [redacted] 2015 when I went on my weekly visit to see my mother there was some documents indicating that the fund had been sold and the proceeds from the sale had been invested into a new fund Cohen and Steers contradicting the direction I had given Mr. J[redacted], and of course Mr. J[redacted] took out his 3.5% commission on the purchase of the new fund. The next day on October [redacted] 2015 I called Mr. J[redacted] and left a message asking him why he had not followed my instructions. He returned my call implying that his understanding of the direction was to buy the new fund which I told him was not what I had told him and reminded him of the specific words I used calling the 3.5% commission a deal breaker. He indicated that the deal was done, and I told him I wanted it reversed and my total sale value of the fund to be sent to my mother. He said he would talk to his management. The next day he called me and explained that the deal was done and could not be reversed. I explained that the reason I did not want to buy the new fund was as I had told him that I did not want to pay the 3.5% commission for a fund with a 5% return. At this point I gave up, but the following Wednesday on November [redacted] 2015when I visited my mother and told her what happened she got irritated and said that I had given Mr. J[redacted] specific instruction that he ignored to get his commission and wanted me to get the total moneys that she was due. The next couple of days on November [redacted], and [redacted] I called Mr. J[redacted] who failed to return my call. I then escalated the issue to his manager Mr. J[redacted] A[redacted] when I spoke with him he said the deal was done and the commission could not be refunded. I instructed Mr. A[redacted] that I wanted to close out the fund immediately because of his company’s lack of ethics in light of the fact that they just stole $2167.65 from my 82 year old mother. The original fund Apple Hospitality was sold for $61932.96 and the 3.5% commission that MR J[redacted] took contrary to me and my mother’s instructions totals to $2167.65. I am demanding that David Lerner associates immediately refund the monies to my mother.Desired Settlement: The original fund Apple Hospitality was sold for $61932.96 and the 3.5% commission that MR J[redacted] took contrary to me and my mother’s instructions totals to $2167.65. I am demanding that David Lerner associates immediately refund the monies to my mother.

Business

Response:

David Lerner Associates Inc. is reviewing the allegations in this complaint # [redacted] and will provide a written response.Please be advised that although this communication is marked as a second request, David Lerner Associates, Inc., Allen Holeman nor any otherperson in the Compliance Department of David Lerner Associates Inc. received this complaint or a communication from the newyorkRevdex.comon or about 12/*/2015.

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID# [redacted], and have determined that my complaint has NOT been resolved because:

[Your Answer Here]

I believe the response from David Lerner stating there was no merit for this claim was completely inaccurate. In their response they state that we acknowledged the course of action which in my letter clearly explains that after the representative misled us and allowed us to sign all the documents to transfer the monies only then did he inform us that there was a 3.5% fee for the transaction, at which time I clearly told him with my mother as a whitness that this 3.5% fee was a deal breaker and I instructed him to close out the fund and send us a check for the full amount of the fund. The only mistake we made was not to have the documents that were signed prior to the representative telling us about the 3.5% fee destroyed. The reply also states that on more then 1 occasion we acknowledged this course of action which is completely inaccurate, as my letter indicated when we had not received a check for 2 weeks I called the representative to ask him where the check was, not had he proceeded with the transaction. During this call the representative indicated the fund was increasing in value and he was trying to optimize the amount of money that the existing fund could be sold for, and my response was fine as long as the fund is sold within 1 week. Another occasion when I clearly reitterated my direction to sell the fund was when my mom received a letter indicating the fund had been sold and this new fund with the 3.5% commision had been purchased against my direction. Again this was reaffirmed when I spoke to the representatives manager who insisted he had to speak with my mother and when I conferenced her in she told the representatives manager that I had directed the representative to sell the fund affirming the direction I had given the representative.

In summary the David Lerner representative misled us into moving the monies from one fund to the other without indicating that there was a 3.5% charge until all the documents had been signed, after he told us about the 3.5% fee I clearly told him this was a deal breaker and that I wanted to close out the account and get a check sent to my mom. The representative then processed the transaction 3 weeks later in order for him to get his 3.5% commision. I have since closed out the account at a loss of this fee because of the unethical business practices from the firm.

In order for the Revdex.com to appropriately process your response, you MUST answer the question above.Sincerely,[redacted]

Business

Response:

Revdex.com ID # [redacted] David Lerner Associates, Inc. (“DLA” or “Firm”) is in receipt of the Revdex.com’s ("Revdex.com") follow-up correspondence dated January *, 2016 regarding the account of [redacted]. DLA stands by its response provided December **, 2015. Specifically, the concerns and allegations of the customer were reviewed with the Investment Counselor and the Assistant Branch Manager, both of whom refute the points made by the customer in this matter. There were orders given for each transaction and the charge and/or commission were fully disclosed. It was almost two weeks after the transactions that a question was raised about the fee charge. The Investment Counselor did agree to review this issue with the manager and consequently did so with the Assistant Branch Manager. Their determination concluded that the trade orders were given, taken and processed as instructed and did not necessitate a reversal. Consequently, while DLA regrets the client’s perception in this situation, DLA reiterates its stance on this matter.

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Description: INVESTMENT SECURITIES

Address: 477 Jericho Turnpike, Syosset, New York, United States, 11791

Phone:

+1 (516) 921-4200
+1 (800) 367-3000
+1 (800) 453-7637
+1 (914) 761-6456
+1 (914) 761-6434
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