FINRA recently sanctioned David Lerner & Associates and required the firm to pay restitution to investors in Apple REIT Ten. FINRA recently posted information on the restitution process on its website. For the full text of the message go to http://www.finra.org/Investors/ProtectYourself/AfterYouInvest/InvestorClaimsFundsRestitution/P193920.
Here is a brief blow by blow of the information you will find at FINRA’s website:
Who is eligible for restitution?
FINRA’s restitution program is open to customers who purchased Apple REIT Ten through David Lerner. FINRA has established a settlement fund from the fine recently paid by David Lerner and restitution will be distributed to certain investors, based on a review of Apple REIT Ten customers and criteria determined by an Independent Consultant and FINRA staff. The review process is expected to be complete on or about December 22, 2012.
How will eligible individuals be notified?
Eligible investors will be notified by, and receive payment from, the Independent Consultant on or about January 22, 2013.
If for any reason the Independent Consultant cannot locate any customer after reasonable and documented efforts to do so, the Independent Consultant will forward any undistributed restitution and interest to the appropriate escheat, unclaimed property or abandoned property fund for the state in which the customer is last known to have resided.
Do I have to redeem my shares to receive a restitution payment?
No, investors eligible for restitution need not exchange, redeem, or otherwise dispose of their shares to receive a payment.
Of course the FINRA restitution process only applies to Apple REIT Ten owners. Unfortunately, many investors purchased Apple REIT Six, Apple REIT Seven, Apple REIT Eight, and Apple REIT Nine from David Lerner. For these individuals, it appears that the FINRA arbitration process remains the best way to recover any losses.
The White Law Group has been investigating the liability that David Lerner has for recommending Apple REITs to its clients for over a year and continues to advise investors on their litigation options.
If you purchased Apple REITs from David Lerner and are interested in exploring your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.