Martin Walcoe: David Lerner Advisor Faces Energy 11/12 Allegations

Syosset, New York financial advisor Martin Walcoe (CRD# 1593935) is under investigation in connection with allegations of unsuitable sales of Energy 11 and Energy 12, LP. Financial Industry Regulatory Authority records show that he is currently registered as a broker with David Lerner Associates.

Mr. Walcoe’s BrokerCheck report discloses FINRA’s investigation into his conduct. Filed in March 2024, it states that FINRA has determined to recommend disciplinary action against him, alleging that he failed to reasonably supervise sales of Energy 11, LP, and Energy 12, LP and that he sold investments in the same without a reasonable basis to believe they were suitable for the customers in question.

In a statement included with the disclosure, Mr. Walcoe defends himself against with FINRA’s proposed allegations. “I take my regulatory responsibilities, and my responsibilities to my clients, including my responsibility to supervise, very seriously,” he writes, continuing: “I have meritorious defenses which I intend to vigorously pursue, including that: I fulfilled my supervisory obligations; my recommendations were suitable and consistent with the firm’s compliance protocols; and I followed all applicable procedures for maintaining accurate books and records.”

His BrokerCheck report also discloses several investor complaints against him. The most recent, filed in 2021, alleged that as a representative of David Lerner Associates, he recommended unsuitable investments in Puerto Rico bonds, misrepresented and omitted material facts, and breached his fiduciary duty. In 2022 the complaint reached a settlement of $100,000.

A second investor complaint, filed in 2020, alleged that as a representative of David Lerner Associates, he made unsuitable recommendations, misrepresented and omitted material facts, and breached his fiduciary duty in connection with investments in Energy 11, Energy 12, and SOAEX. The complaint reached a settlement of $60,183.02.

A third investor complaint, filed in 2012, alleged that he misrepresented and recommended an unsuitable real estate investment. The complaint evolved into an arbitration proceeding before a FINRA panel, which issued an award to the customer of $260,000.

According to the Financial Industry Regulatory Authority, Martin Walcoe holds 37 years of securities industry experience. Based in Syosset, New York, he has been a broker with David Lerner Associates since 1996. He was previously registered with David Lerner Associates from 1986 until 1995. His credentials include the passage of four securities industry qualifying exams: the General Securities Principal Examination, or Series 24; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Securities Agent State Law Examination, or Series 63. He holds 26 state licenses. (Information current as of April 14, 2024.)

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