David Learner Associates just had a $1 million dollar claim filed against them for Spirit of America Fund (NASDAQ: SOAEX) and other alleged bad investments. David Lerner Associates has about three proprietary funds, SOEAX of which has been experiencing a bit of devaluation.
The failed investment was alledgely due to over concentrations in energy sector investments, many of which were notpublicly traded. The proprietary products were exclusively sold to clients of David Lerner Associates.
Haselkorn & Thibaut, a national investor law firm, has started an investigation into David Lerner Associates as well as their products including the Spirit of America Fund, Energy 11 and Energy 12. Investors are encouraged at 1 888-628-5590 or visit InvestmentFraudLawyers.com
The investor claimed that he desired to secure his invested principal while he earns a supplementary income to meet the needs of his family. Some needs he highlighted in his complaint were his children’s education and the future needs of his growing family.
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The recommendation given by David Lerner broker was for the investor to focus the funds in his account into the Spirit of America Fund.
However, the investor was also totally oblivious of the fact that this fund comes with a high commission of about 10%. The complaint alledges that high commission was the a big motivator by the financial advisors for them to recommend the products to their clients.
Unfortunately, events did not seem to turn out as planned, as the investor lost an estimated $1,000,000 in his investment capital, because of the fund and broker’s failed strategy.
Investment losses are very common, but not always the fault of the investor. Before investing, all investors should check the background of their financial adviosr by going to FINRA’s brokercheck website and seeing if they have any complaints. If you ever feel pressured to make an investment, it is always best to take time and seek another opinion. Investment fraud lawyers oftent offer free consultations on companies and investment products.