Recovering Losses caused by Investment Misconduct

FINRA Pursues Claim Against David Lerner Associates

David Lerner Associates (DLA) has been accused of investment fraud. DLA has been accused of  selling illiquid real estate investment trust shares to unsophisticated and elderly investors without taking into account whether the investments were suitable for them.

According to the Financial Industry Regulatory Authority (FINRA), the Syosset, New York-based brokerage firm misled individuals who invested in the $2 billion Apple REIT Ten offering. The unsuspecting investors purchased more than $300 million of shares in the REIT.

DLA allegedly provided misleading information about distribution rates for a series of predecessor securities to investors. FINRA claims that the figures provided did not show that the distributions far exceeded income and that the distributions were funded by debt that increased leverage in the REITs.

In a statement, DLA has denied the FINRA allegations.

According to FINRA, DLA has sold nearly $6.8 billion of Apple REIT shares to more than 122,000 investors since 1992. Since 1996, DLA has generated over $600 million from those sales, accounting for approximately 60 percent of DLA’s business.

About Our Law Firm

The law firm of David P. Meyer & Associates represents clients who have been harmed by investment fraud. We have written a book that you can order for FREE entitled, Five Signs of Investment Fraud…And What to Do if it’s Happened to You.

If you have lost money or have had your investments frozen in the Apple REIT recommended by David Lerner Associates, contact an investment fraud attorney by calling toll free 866-827-6537 or filling out our online form. We represent all of our clients on a contingency fee basis and we never request a retainer of any kind for these cases.