David Scott Lerner, of Long Beach, New York, a stockbroker registered with Network 1 Financial Securities Inc, has been fined $5,000.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Lerner used unauthorized methods to communicate with customers about securities business. Letter of Acceptance, Waiver, and Consent No. 2021071945201 (July 25, 2024).
According to the AWC, from June of 2021 to September of 2021, while registered with Network 1 Financial Securities Inc., Lerner sent and received at least 125 securities-related communications through his personal email. These communications included discussions with customers about private investments in public equity (PIPE) deals and other possibly risky investments. Lerner did not use his firm’s email account for these communications. This led to Network 1 failing to maintain accurate books and records, which is a requirement under Securities Exchange Act of 1934 Section 17(a) and Rule 17a-4(b)(4)
FINRA found that Lerner violated FINRA Rules 2010 and 4511.
FINRA Public Disclosure shows that Lerner is referenced in ten customer initiated investment related disputes concerning Lerner’s conduct while associated with securities broker dealers. On May 18, 2000, a customer initiated investment related complaint involving Lerner’s conduct was settled for $408,945.00 in damages based upon alleged unauthorized trading in stocks when Lerner was associated with First Union Securities Inc.
On June 6, 2000, a customer initiated investment related complaint involving Lerner’s conduct was settled for $23,256.00 in damages based upon the alleged failure to follow instructions to sell stocks during the period that Lerner was associated with First Union Securities Inc. On May 18, 2000, a customer complaint involving Lerner’s conduct was settled for $193,966.00 in damages based upon the alleged failure to follow instructions.
Lerner is also referenced in a securities arbitration claim that was settled for $45,000.00 in damages based upon alleged unsuitable recommendations in over-the-counter equities during the time that Lerner was associated with Sandgrain Securities Inc. FINRA Arbitration No. 08-01241 (March 25, 2010).
Lerner was associated with Network 1 Financial Securities Inc. in Long Beach, New York from August 13, 2014, to December 20, 2022. Lerner has been associated with Madison Global Partners LLC in Hauppauge, New York since December 6, 2022.
