Erez Law is currently investigating David Lerner Associates, Inc. broker Michael Norton (CRD# 2617985) regarding Energy 11 investment losses. He has been registered with David Lerner Associates, Inc. in Syosset, New York, since 1998.
It is alleged that David Lerner Associates, Inc. brokers recommended their clients invest in non-public limited partnerships, including Energy Eleven (Energy 11), LP, which was not suitable for many investors.
Energy 11, LP is a public non-traded limited partnership that was formed to acquire and develop oil and natural gas properties throughout the United States. Energy 11, LP has raised more than $350 million and has invested the proceeds in non-operated working interests in approximately 221 existing producing wells and approximately 247 future development locations in the Sanish field located in Mountrail County, North Dakota, according to its website. Energy 11, LP is not publicly traded and has limited liquidity.
As of May 2020, the energy sector has become the second-largest group in the S&P Index, representing just 3% of the index, compared to 15% 10 years ago and 30% back in 1980.
In November 2024, FINRA “made a preliminary determination to recommend that disciplinary action be brought against Michael Norton alleging violations of FINRA Rules 2111 and 2010 in that he recommended investments in Energy 11, L.P., and Energy Resources 12, L.P. to customers without a reasonable basis to believe the investments were suitable for those customers based on their investment profiles; and violation of FINRA Rules 4511 and 2010 in that he caused a member firm to maintain inaccurate books and records regarding customer investment profiles.”
Michael Norton Customer Complaints
Norton has been the subject of eight customer complaints between 2012 and 2020, one of which was denied, one was withdrawn, and two were closed without action, according to his CRD report. Recent complaints are regarding:
March 2024. “Gabelli purchase – unsuitability, misrepresentation and omissions Allegation period: December 4, 2018, the date of the first purchase of SOAEX to March 7, 2024 the date the SOC was received.” The customer is seeking $500,000 in damages.
September 2021. “unsuitability, misrepresentation/omission, breach of fiduciary duty/negligence.” The customer sought $350,000 in damages, and the case was settled for $108,408.
July 2019. “Unsuitability Puerto Rico Bonds. The customer sought $10,000 in damages and the case was settled for $2,750.
January 2018. “Unsuitability, misrepresentation/omission.” The customer sought $32,000 in damages and the case was settled for $4,750.
May 2016. “Unsuitability.” The customer sought $45,000 in damages and the case was settled for $6,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, David Lerner Associates, Inc. may be liable for investment or other losses suffered by Michael Norton’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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