Our law firm is currently investigating David Lerner Associates and the Apple REIT Ten. Earlier this week, the Financial Industry Regulatory Authority (FINRA) filed a Complaint against David Lerner Associates, Inc., of Long Island, New York, claiming that the firm has taken advantage of elderly or inexperienced investors by selling them Apple REIT Ten shares without fully investigating whether or not the purchase would be a good investment.
David Lerner Associates misled investors in the following ways, according to FINRA:
- Advertising on their website previous distribution rates and not the most recent ones. The recent rates also far exceeded income from operations and were funded by debt that further leveraged the REITs.
- Incorrectly valuing previous Apple REIT shares at a constant price of $11 despite market fluctuations, performance declines and increased leverage, while maintaining outsized distributions of 7 to 8 percent by leveraging the REITs through borrowings and returning capital to investors.
- Failing to properly investigate the valuation and distribution abnormalities of the Apple REITS that were already closed prior to selling Apple REIT Ten.
- If you are an investor who believes that you have been misled by David Lerner Associates, Inc. regarding the purchase of shares in Apple REIT Ten, there are important steps that you can take to recoup your money.
Contact Us to Learn the Next Steps
Discover these steps along with information on the most common forms of investment fraud by contacting one of our experienced investment fraud attorneys. We will talk with you one on one – for free – and help you analyze your situation and give you options on where to go from here.
If you have lost money or had your funds frozen in the Apple REIT recommended by David Lerner, contact us today. All of our cases are handled on a contingency fee and we never request a retainer of any kind for these cases. Obtain your free case evaluation by calling toll free 888-390-6491.
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