David Lerner Associates' Apple REIT 8 Also In Trouble
According to customer statements from David Lerner Associates, the value of Apple REIT 8 hasn’t ever changed, even during the recent real estate downturn. In reality, the REIT is even now facing difficulties and may have to surrender some of its properties to lenders.
Although investors have continued to receive monthly payments, most of that money has been borrowed. Even though borrowing has become more difficult, every month customers continue to receive statements that the shares of Apple REIT 8 are valued at $11. That apparent lack of volatility could be misleading to investors and create an illusion that the REIT is low risk when it is anything but.
Just one day after FINRA’s accusations regarding Apple REIT 10, a company began a tender offer for up to 5% of the Apple REIT 8 shares. The company offered to tender the stock for just $3, which is a far cry from the value of $11 listed on customer statements.
The issues with inaccurate unlisted REIT value listings were brought to light by FINRA in 2009, but the Apple REITs have been called “the only funds” to continue to list the offering price instead of an adjusted value. This just goes to show that Apple REIT 10 may not be the only risky product from David Lerner Associates.
The securities arbitration attorneys with Meyer Wilson have represented investors nationwide in FINRA arbitration claims. If you have been affected by the Apple REIT fraud, contact us at (888) 390-6491 today to discuss your case.