The Financial Industry Regulatory Authority (FINRA) has accused David Lerner Associates of misleading investors regarding their Apple REITs, in particular the unlisted Apple REIT 10. The suit alleges that the company targeted elderly and inexperienced investors without checking into how suitable these investments may be for their clients.
It is alleged that David Lerner Associates omitted information regarding distributions and income, and failed to inform investors that the distributions were financed by debt. It was also alleged that David Lerner Associates “failed to sufficiently investigate the valuation and distribution irregularities” of the REITs.
Apple REITs have made up 60% - 70% of David Lerner & Associates’ total business since 1996. Investors put $300 million into the $2 billion Apple REIT 10 this year. The company, which is well-known for its “Take a Tip from Poppy” radio campaign, denies FINRA’s allegations.
If you have lost money through an investment in Apple REITs, contact an experienced FINRA lawyer today to discuss your case. We represent victims of investment misconduct nationwide in stockbroker mediation, arbitration, and litigation claims. You can reach us at (800) 738-1960 or complete the confidential contact form at the top of this page.