David Lerner Associates was fined in 2004 by the National Association of Securities Dealers for sales contests that promoted proprietary mutual funds and variable annuity and variable life insurance products. A year later the brokerage was fined for airing advertisements that exaggerated the firm's investing record.
The firm was fined $400,000 in 2006 for violating disclosure rules in the sale of variable life insurance and annuities. David Lerner Associates didn't admit or deny wrongdoing.
The case is Kronberg v. David Lerner Associates Inc., U.S. District Court, District of New Jersey (Newark).