According to FINRA, Daniel Todd Lerner of Bedford Hills, New York was fined $5,000 and suspended from association with any FINRA member in all capacities for two months for recommending an unsuitable investment to a 92-year-old customer.

Lerner recommended that a 92-year-old retired customer purchase $60,000 of an illiquid, proprietary limited partnership. Prior to this recommendation, the customer's risk tolerance was listed as moderate. The investment represented approximately 25 percent of her liquid net worth.

Illiquid limited partnerships are generally unsuitable for elderly investors because these products typically cannot be easily sold and may require years before investors can access their money. A 92-year-old investor has limited investment time horizon and may need access to funds for healthcare or living expenses.

A moderate risk tolerance does not typically support investment in illiquid alternative products. And concentrating 25 percent of liquid net worth in a single illiquid investment is significant concentration risk for any investor, particularly a senior.

Contemporaneous with this action, FINRA accepted an AWC from Lerner's member firm ordering restitution of $3,600 to the customer.

The suspension is in effect from June 16 through August 15, 2025.

This case is part of a series of actions related to David Lerner Associates and its proprietary limited partnerships, demonstrating a pattern of unsuitable sales to seniors.

Investors, particularly seniors, should carefully consider whether illiquid investments are appropriate given their age, need for income, and potential need to access funds. Family members helping elderly relatives with finances should scrutinize recommendations for illiquid products.