Call Now for a Free Consultation
(888) 637-5510

Written by 7:51 pm Blog, Current Investigations

David Lerner Associates’ Energy 11 LP has $45M in Unpaid Distributions 

David Lerner Associates’ Energy 11 LP has $45M in Unpaid Distributions 

Energy 11 LP Shareholders may have claims 

 The White Law Group continues to investigate potential securities claims involving David Lerner Associates’ Energy 11 LP. 

According to an article in Investment News yesterday, David Lerner Assoicates in-house energy fund, Energy 11 L.P., just reported $45 million in ‘unpaid distributions’ to investors. 

The company has reportedly failed to pay millions of dollars in distributions to investors due to the energy prices collapsing in 2020 amid the Covid-19 pandemic. 

The article, which sites recent filings with the SEC, reports that Energy 11 L.P. owes $45 million of unpaid distributions ($2.39 per common unit).  

This news came to light after the Financial Industry Regulatory Authority (FINRA) barred David Lerner broker Jeffrey Basford, in Westport, Connecticut last week. Basford was reportedly barred for failing to provide information in FINRA’s investigation into “potential unsuitable sales of proprietary energy products at the firm.” 

Energy 11, L.P. was formed in 2013 by the owners of the Apple REITs and two others, to enable investors to invest in oil and gas properties located onshore in the United States, according to its prospectus. 

The offering period for purchasing units of Energy 11, LP began on January 22, 2015 and when it concluded on April 24, 2017, David Lerner Associates had reportedly raised $374,322,962, according to the company. According to recent filings, at the end of June, Energy 11 LP had close to $360 million in total assets. 

We previously reported a large drop in value of the fund on January 25, 2021, when the Partnership announced an estimated per common unit value as of December 31, 2020 of $7.23 per common unit, indicating a more than 60% decline in value. The original offering price was $19 and $20 per unit. 

According to the Investment News article, the company claimed that Energy 11 LP paid its required distribution of 7% from 2015 until early 2020, when “Covid-19 hit and the demand for oil and gas dropped dramatically.” 

The LP reportedly suspended its payments to investors from March 2020 until November 2021, when it started paying half the regular monthly distribution, according to the article.  

Filing a Complaint against your Brokerage Firm 

Brokerage firms are required to perform due diligence on any offering they recommend and to ensure that all recommendations made are suitable in light of the client’s age, investment experience, net worth, income, and investment objectives. 

If a firm fails to perform due diligence or makes an unsuitable recommendation, the broker-dealer can be held responsible for any losses in a FINRA arbitration claim. 

FINRA can help resolve problems and disputes through two non-judicial proceedings: arbitration and mediation. FINRA’s Dispute Resolution forum handles nearly all of the securities-related arbitrations and mediations in the United States. 

If you have concerns regarding your investment in Energy 11 LP and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510. 

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. 

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com. 

To learn more about the investigation, please see: Energy 11 LP & Energy Resources 12 LP Investigation, updated… 

 

  

  

  

 

 

Tags: , , , , , , , , , , , , , , , , , , , , , , Last modified: August 23, 2022