David Lerner Apple REIT Securities Fraud Investigation Updates

Wednesday, June 29th, 2011

Do you have questions about your Apple REIT investment? If so, The White Law Group may be able to help.

The White Law Group is currently investigating claims that David Lerner unsuitability recommended that investors invest in Apple REIT investments.  Based on the firm’s investigation, it appears that investors that invested in Apple REIT 7, Apple REIT 8, Apple REIT 9, and Apple REIT 10, may have claims for damages against David Lerner & Associates (the FINRA broker-dealer that sold these investments to the public).

REITs (or real estate investment trusts) can be an unsuitable investment for retirees or income seeking investors.  First, the investment itself can be unsuitably risky because it is entirely dependent on the overall health of the real estate market.

Second, REIT investments are generally illiquid, severely limiting the investors’ ability to access their funds should the need arise.  Moreover, REITs are often less regulated than other types of investments (mutual funds, equities, etc.) and generally pay a higher commission than other products to the financial advisor that recommends it.

David Lerner Associates Inc. has been accused by FINRA of targeting unsophisticated and elderly customers while selling real estate investment trust shares without considering whether the illiquid security was suitable for its clients.  FINRA further alleges that David Lerner Associates has sold almost $6.8 billion of Apple REIT shares to more than 122,000 customers since 1992, and that those sales have generated more than $600 million in revenue for the firm.

To speak with a securities attorney about your Apple REIT investment, contact The White Law Group’s Chicago office at 312/238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.  For more information on the firm’s David Lerner investigation, please visit davidlernerlosses.tumblr.com.

 

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