David Lerner Associates, Inc (DLA) has agreed to pay a refund of $ 1,002,566 as part of a settlement with the Financial Industry Regulatory Authority (FINRA).
From January 2015 to November 2019, DLA representatives recommended two fluid, privately owned partnerships to thousands of customers. DLA’s supervisory system, however, was not reasonably designed to achieve compliance with Finra’s fitness rule.
DLA also failed to respond to red flags that its representatives made inappropriate recommendations of limited corporate relationships to customers. Overall, DLA, through its representatives, made inappropriate recommendations to 200 customers.
For these violations of the FINRA 3110, 2111 and 2010 rules, the company is doomed, ordered to pay $ 1,002,566 rehabilitation and is required to confirm the choice of customer investment profile information.
The company is also suspended by the involvement in the sale of privately owned, non -fluid products for two years.
DLA has been a member of Finra since 1970. DLA, based in New York’s Syosset, is a private broker-intermediary conducting a retail business from eight branches. DLA has about 120 registered delegates.