White Plains, NY | January 13, 2026
Former New York broker Alan Charles Lowenfels (CRD# 4512765) is facing his third customer complaint in four years, with a pending FINRA arbitration alleging unsuitable investments, misrepresentation, and omissions related to private placement energy funds. The complaint, filed on September 26, 2025, seeks $165,000 in damages and involves investments in Energy 11 and Energy 12—products that Lowenfels previously settled two other complaints over.
According to FINRA BrokerCheck records, Lowenfels spent nearly 24 years with David Lerner Associates before his registration ended in January 2026. His disclosure history reveals a troubling pattern: three separate customer complaints, all involving the same problematic investment products, all alleging unsuitability and misrepresentation, and all resulting in either settlements or pending arbitration.
The current complaint covers a decade-long period—from August 19, 2015, when the client made their first purchase of Energy 11, through October 7, 2025, when the Statement of Claim was received. This extended timeframe raises significant questions about ongoing sales practices and the adequacy of supervisory oversight at David Lerner Associates.
BrokerCheck Snapshot
Name: Alan Charles Lowenfels
CRD #: 4512765
Firm: David Lerner Associates, Inc. (No longer registered as of January 2026)
Location: White Plains, NY
Years in Industry: 24
Number of Disclosures: 3
The Pattern: Three Complaints, Same Products
What makes Lowenfels’ disclosure history particularly concerning is not just the number of complaints, but their striking similarity. All three involve the same types of investments and virtually identical allegations:
Pending Complaint (Filed September 2025)
FINRA Case #: 25-02058
Filing Date: September 26, 2025
Alleged Damages: $165,000
Products: Energy 11, Energy 12 (Private Placements)
Allegations: Unsuitability, misrepresentation and omission
Time Period: August 19, 2015 – October 7, 2025
Status: Pending
Settled Complaint #1 (Filed August 2021)
FINRA Case #: 21-02189
Filing Date: August 24, 2021
Alleged Damages: $48,847
Products: Spirit of America Energy Fund (SOAEX), Energy 11
Allegations: Unsuitability, misrepresentation/omission
Settlement Amount: $25,000
Settlement Date: June 22, 2022
Lowenfels’ Contribution: $0
According to Lowenfels’ statement, “The matter was settled on 6/22/2022 for $25,000.00 which represents the buyback of E11, 800 units at $15.00 per unit for $12,000.00, and $13,000.00 for other claimed losses.”
The client alleged that “transactions in Spirit of America Energy Fund (SOAEX) was not suitable based on there limited investment experience.”
Settled Complaint #2 (Filed August 2019)
FINRA Case #: 19-02622
Filing Date: August 29, 2019
Alleged Damages: $120,000
Products: Mutual Fund (Spirit of America Energy Fund)
Allegations: Unsuitability, misrepresentation/omission
Settlement Amount: $15,000
Settlement Date: December 31, 2020
Lowenfels’ Contribution: $0
Despite settling, Lowenfels stated: “I vehemently deny the allegations.”
Total Exposure Across All Complaints
- Total Alleged Damages: $333,847
- Total Settlements Paid: $40,000
- Current Pending Amount: $165,000
The Problem Products: Energy Funds and Private Placements
All three complaints involve investments in David Lerner Associates’ energy-related products, particularly:
- Spirit of America Energy Fund (SOAEX) – A mutual fund focused on energy sector investments
- Energy 11 – A private placement investment
- Energy 12 – A private placement investment
Private placements like Energy 11 and Energy 12 are among the riskiest investments available to retail investors. They typically involve:
- Illiquidity – Cannot be easily sold or redeemed
- High risk of total loss – No secondary market, no guarantee of return
- Lack of transparency – Limited disclosure compared to public securities
- Concentration risk – Often focused on a single sector or strategy
- Long holding periods – May require investors to hold for years
- Limited regulatory oversight – Not registered with the SEC
- High fees and commissions – Can generate substantial broker compensation
Why Energy Funds Were Particularly Problematic
Energy sector investments, especially in the 2015-2025 timeframe covered by the current complaint, faced extraordinary volatility and risk:
- Oil price crashes in 2014-2016 and 2020
- Fundamental shifts away from fossil fuels
- Increased competition from renewable energy
- Bankruptcy of numerous energy companies
- Environmental, social, and governance (ESG) concerns
For investors with “limited investment experience”—as one complaint specifically noted—these products were almost certainly unsuitable.
David Lerner Associates: A History of Problematic Sales Practices
David Lerner Associates has faced significant regulatory scrutiny over the years, particularly regarding its sales of proprietary products and private placements. The firm has been the subject of:
- Multiple FINRA enforcement actions
- State securities regulator investigations
- Numerous customer complaints involving similar products
- Questions about sales pressure and compensation structures
Brokers at firms with aggressive sales cultures may face pressure to:
- Recommend proprietary products regardless of suitability
- Emphasize commission-generating investments
- Minimize risks and maximize potential returns
- Target less sophisticated investors who are easier to influence
The fact that Lowenfels has three complaints involving the same products over a four-year period suggests either a persistent problem with how these investments were sold, inadequate disclosure of risks, or both.
Red Flags: Unsuitable Energy Investments
The complaints against Lowenfels highlight several warning signs that should alert investors to potentially unsuitable investment recommendations:
1. Concentration in Single Sector
Over-allocation to energy investments—especially during a period of industry upheaval—exposes investors to catastrophic losses if the sector declines.
2. Private Placements for Inexperienced Investors
One complaint specifically mentions “limited investment experience.” Private placements are generally suitable only for sophisticated investors who:
- Understand the risks
- Can afford to lose their entire investment
- Don’t need liquidity
- Have other diversified holdings
3. Proprietary Products
When a firm recommends its own products, conflicts of interest abound:
- Higher commissions for the broker
- Pressure from management to sell firm products
- Limited objectivity in recommendations
- Potential for misaligned incentives
4. Repeated Complaints About Same Products
When multiple customers complain about the same investments, it suggests:
- Systemic problems with how products were marketed
- Inadequate risk disclosure
- Possible misrepresentations about returns or safety
- Failure to supervise by the firm
5. Long Time Periods Without Review
The current complaint covers a 10-year period (2015-2025). This raises questions:
- Were the investments reviewed periodically for continued suitability?
- Did the client’s circumstances change over time?
- Were losses allowed to mount without intervention?
- Was there adequate communication about performance?
Alan Lowenfels’ Career Background
According to FINRA records, Alan Charles Lowenfels spent his entire securities career—nearly a quarter century—with a single firm.
Professional History:
- David Lerner Associates, Inc. (May 2002 – January 2026) – Investment Representative in White Plains, NY
Securities Licenses:
- General Securities Representative Examination (Series 7) – passed May 2002
- Securities Industry Essentials Examination (SIE) – passed October 2018
- Uniform Securities Agent State Law Examination (Series 63) – passed May 2002
As of January 2026, Lowenfels is no longer registered with FINRA, meaning he can no longer sell securities or provide investment advice in a registered capacity. The timing of his departure—coming shortly after the filing of the third complaint in October 2025—raises questions about whether the departure was voluntary or related to the pending arbitration.
The Significance of Settlement Without Personal Contribution
In both of Lowenfels’ settled complaints, the settlement amounts were paid entirely by the firm with $0 contribution from Lowenfels personally. This is common in securities arbitration but raises important questions:
Why Firms Settle
Firms may settle customer complaints for several business reasons:
- To avoid litigation costs that exceed settlement amounts
- To maintain customer relationships and avoid negative publicity
- To resolve matters quickly rather than engage in prolonged proceedings
- As a business decision unrelated to the merits of the case
But Settlement Still Means Something
Even when firms settle “without admission of wrongdoing,” investors should consider:
- The firm found it more advantageous to pay than to defend the claim
- Similar claims may have merit
- The pattern of settlements suggests problems with sales practices
- The products involved may have been genuinely unsuitable
The fact that Lowenfels has settled two previous complaints involving the same products makes the pending third complaint particularly significant. It suggests the issues were not isolated incidents but part of a broader pattern.
Can You Recover Losses from Energy Fund Investments?
If you suffered losses due to unsuitable investments in energy funds, private placements, or other high-risk products that were misrepresented or inappropriately recommended, you may be entitled to recover your losses through FINRA arbitration.
Energy sector private placements are often unsuitable for:
- Retirees who need income and capital preservation
- Conservative investors with low risk tolerance
- Investors with limited investment experience
- Those who need liquidity or may need access to their funds
- Investors who are already over-concentrated in energy or a single sector
- Anyone who was not fully informed of the risks
Patil Law, P.C. represents investors nationwide who have been harmed by unsuitable investment recommendations, broker misconduct, and securities fraud. We have over 15 years of experience in securities law and have recovered more than $25 million for clients across 1,000+ cases.
About FINRA Arbitration
FINRA arbitration is a streamlined dispute resolution process for securities-related claims. It offers a faster, more cost-effective alternative to traditional court litigation. Most cases are resolved within 12-16 months. Claims generally must be filed within six years of the incident.
FINRA arbitration provides several key advantages:
- Expert arbitrators who understand securities industry practices and products
- Discovery rights allowing investors to obtain documents and testimony from the firm
- Lower costs compared to traditional court litigation
- Faster resolution with most cases concluding in 12-16 months
- Binding awards that are enforceable in court
- No jury – cases are decided by neutral arbitrators with relevant expertise
Our Experience with Private Placement Cases
Private placement cases require attorneys who understand both the legal standards governing suitability and the complex mechanics of alternative investments. Attorney Chetan Patil and our legal team—including attorneys Gabriela Dubrocq and Patricia Herrera—focus exclusively on investor protection and securities law.
We handle cases involving:
- Unsuitable private placement investments
- Energy sector fund losses
- Non-traded REITs and alternative investments
- Misrepresentation and omission of material facts
- Concentration risk and over-allocation to single sectors
- Breach of fiduciary duty
- Failure to supervise
We work on a contingency fee basis, meaning you pay no attorney fees unless we recover money for you. Your consultation is completely free and confidential.
The Six-Year Rule and Why Timing Matters
Securities claims must generally be filed within six years under FINRA rules. However, the calculation of this deadline can be complex:
- The clock may start when the investment was made
- Or when the investor discovered (or should have discovered) the problem
- Or when the last transaction or communication occurred
- Different jurisdictions may have different rules
The pending complaint against Lowenfels covers investments dating back to 2015. Investors who made similar investments in energy funds or private placements during that period should:
- Review their account statements for similar products
- Calculate potential deadlines based on their investment dates
- Gather documentation of their investments and losses
- Consult with a securities attorney before time runs out
Don’t assume your claim is too old without speaking to an attorney. The statute of limitations analysis can be nuanced, and waiting could mean losing your right to recover.
Related Brokers and Firms
If you’ve had concerns with advisors at similar firms or experienced comparable issues with energy investments or private placements, you may want to review:
- David Lerner Associates – Complaints & Disclosures
- Unsuitable Investment Claims
- Private Placement Losses
- Broker Misconduct
- Failure to Supervise
Frequently Asked Questions
What are the complaints against Alan Lowenfels?
Alan Lowenfels faces three customer complaints spanning 2019 to 2025, all alleging unsuitable investments, misrepresentation, and omissions involving energy funds and private placements. Two complaints settled for a combined $40,000, and a third seeking $165,000 is currently pending in FINRA arbitration (Case #25-02058). All complaints involve the same types of problematic energy sector investments.
Can investors recover losses involving David Lerner Associates?
Yes. Investors who suffered losses due to unsuitable energy fund investments, private placements, or misrepresentation at David Lerner Associates or any other firm may be entitled to recover their losses through FINRA arbitration. The pattern of complaints and settlements involving similar products at this firm suggests systemic issues that may support investor claims.
What is FINRA arbitration?
FINRA arbitration is a streamlined dispute resolution process for securities-related claims. It offers a faster, more cost-effective alternative to traditional court litigation. Most cases are resolved within 12-16 months, and claims generally must be filed within six years of the incident.
What does “unsuitable investment” mean?
An unsuitable investment is one that doesn’t align with an investor’s financial situation, investment objectives, risk tolerance, time horizon, or liquidity needs. Private placements and energy sector investments are particularly prone to suitability issues because they carry high risk, lack liquidity, and are complex—making them inappropriate for many retail investors, especially those with limited investment experience.
How do I look up a broker on BrokerCheck?
Visit FINRA’s BrokerCheck website at brokercheck.finra.org and search by the broker’s name or CRD number. BrokerCheck provides free access to employment history, registrations, qualifications, and disclosure events including customer complaints, regulatory actions, and employment terminations.
What should I do if I suspect broker misconduct?
First, gather all documentation related to your investments, including account statements, trade confirmations, prospectuses, and communications with your broker. File a written complaint with your brokerage firm’s compliance department. Then, consult with a securities attorney who can evaluate whether you have grounds for a FINRA arbitration claim. Time limits apply, so don’t delay seeking legal guidance.
About Patil Law, P.C.
Patil Law, P.C. is a securities litigation firm dedicated to representing investors who have suffered losses due to broker misconduct, unsuitable recommendations, and securities fraud. Founded in 2018 by attorney Chetan Patil, the firm focuses exclusively on FINRA arbitration and investment loss recovery.
With over 15 years of combined experience in securities law, Patil Law has successfully recovered more than $25 million for clients across 1,000+ cases. Attorney Chetan Patil earned his law degree from Case Western Reserve University School of Law. Attorneys Gabriela Dubrocq and Patricia Herrera earned their law degrees from University of Miami. The firm handles cases nationwide involving unauthorized trading, churning, unsuitable investments, breach of fiduciary duty, and failure to supervise.
Patil Law works on a contingency fee basis, meaning clients pay no attorney fees unless the firm successfully recovers money on their behalf. All consultations are free and confidential.
Contact Patil Law Today
If you lost money in energy fund investments, private placements, or other unsuitable investments with Alan Lowenfels or any other financial advisor, contact us today for a free, confidential consultation.
Call: 800-950-6553
Email: info@patillaw.com
Website: investmentlosslawyer.com
There is no cost and no obligation. We’re here to help.
Disclaimer: The information in this article is based on FINRA BrokerCheck records and public arbitration filings. The allegations described include pending matters that are unproven, as well as settled matters that were resolved without admission of wrongdoing. All investors are entitled to fair treatment under securities laws. This is attorney advertising. Prior results do not guarantee a similar outcome. This communication is for informational purposes only and does not create an attorney-client relationship.
