Investigation: David Lerner Associates and Spirit of America Energy Fund (SOAEX)

Sonn Law Group is investigating investment losses related to the Spirit of America Energy Fund (SOAEX). Spirit of America mutual funds are available exclusively at David Lerner Associates, a privately-held securities broker dealer headquartered in Syosset, New York. SOAEX was launched in July 2014, and invested 80% of its assets in several aspects of the oil and gas industry. The Fund sought to provide shareholders with long-term capital appreciation and current income. Since its launch, however, SOAEX has lost approximately 50% of its value. Thus, investors have experienced significant losses, and may question whether the recommendation to invest in SOAEX was appropriate for them.

A broker must have reasonable grounds for each recommendation made to you. The broker generally determines whether the recommendation is suitable based on your other securities holdings, financial situation, and risk tolerance. In addition, before a firm offers a security to its customers, the firm must conduct due diligence, that is investigate the facts surrounding the security, to confirm that it is suitable for any customer of the firm. The suitability of an investment for a particular individual is at the center of the investment process and one of the key fiduciary duties owed by a firm and its broker to the customer. A firm may be held liable for its failure to recommend suitable investments to its customers.

If you invested in the Spirit of America Energy Fund (SOAEX) or have experienced investment losses, please call us at 844-689-5754 or complete our “contact form.” Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies.

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