This week, the Financial Industry Regulatory Authority (FINRA) filed a
complaint against David Lerner Associates regarding the investment company’s
sale of Apple REIT Ten. In the complaint, FINRA alleges that the company
misled customers when marketing Apple REIT Ten and that they targeted
“unsophisticated and elderly” investors when looking to sell shares.
What is Apple REIT Ten?
Apple REIT Ten is one of a number of non-listed, public Real Estate Investment
Trusts (REITs) that have been sold by David Lerner Associates, the sole
underwriter, founder, and manager. Throughout the past five months, $300
million in Apple REIT Ten shares, which are invested in hotels across
the country, have been sold out of an open $2 billion offering. Over the
past nine years, David Lerner Associates have sold shares of nine other
Apple REIT securities for a profit of $600 million.
What are the complaints against Apple REIT Ten?
According to allegations outlined by FINRA in yesterday’s disciplinary
complaint, David Lerner Associates used the valuations and distribution
rates of the closed Apple REITs to sell shares of Apple REIT Ten –
distribution rates that FINRA believes were financed by debt. In addition,
in the last seven years, Apple REITs have been valued at a constant price
regardless of significant changes in the real estate market. Instead of
investigating these very strange valuations and distribution rates, the
investment company used them to sell Apple REIT Ten.
What Can Apple REIT Ten investors do to recover their money and get out?
Unfortunately, an estimated 122,000 people have invested in Apple REITs
since 1992. If you lost money or have your investments frozen in the Apple
non-traded REITs sold by David Lerner Associates, contact our law firm
today and speak with an experienced investment fraud attorney or fill out our
All of our cases are handled on a contingency fee basis and we never request
a retainer of any kind in these cases.
Be sure to order our free book,
Five Signs of Investment Fraud…And What to Do if it’s Happened to You.