Erez Law is currently investigating former David Lerner Associates, Inc. broker Jeffrey Basford (CRD# 5077566) regarding energy sector losses. He was registered with David Lerner Associates, Inc. in Westport, Connecticut from 2006 until 2022.

It is alleged that he recommended his clients invest in Energy 11, LP, 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. 

In August 2022, FINRA barred him after he, “consented to the sanction and to the entry of findings that he declined to appear for on-the-record testimony requested by FINRA during the course of its investigation into his potential unsuitable sales of proprietary energy products to customers at his member firm.”

Jeffrey Basford Customer Complaints

He has been the subject of two customer complaints in 2021, according to his CRD report:

September 2021. “Unsuitability, misrepresentation/omission.” The customer is seeking $200,000 in damages and the case is currently pending. 

June 2021. “Unsuitability, misrepresentation/omission.” The customer sought $250,000 in damages and the case was settled for $205,000. The complaint was regarding mutual funds and Energy 11 private placements. 

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 Jeffrey Basford’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.