PALM BEACH, Fla., June 2, 2011 (GLOBE NEWSWIRE) -- The Law Firm of Stein & Stein, P.A., www.steinsteinlaw.com, announces it is investigating Apple REIT Ten, a non-traded $2 billion Real Estate Investment Trust (REIT) sold by David Lerner & Associates.
On June 1, 2011, The Financial Industry Regulatory Authority (FINRA) announced that it filed a complaint against David Lerner & Associates, Inc. (DLA), of Syosset, NY. FINRA alleges the firm solicited investors to purchase shares in Apple REIT Ten, a non-traded $2 billion Real Estate Investment Trust (REIT). FINRA alleges DLA failed to conduct reasonable investigations to determine whether it was suitable for investors and that DLA provided misleading information on its website regarding Apple REIT Ten distributions.
The complaint against DLA alleges that since at least 2004, the closed Apple REITs have unreasonably valued their shares at a constant price of $11 notwithstanding 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.
Since January 2011, David Lerner was the sole underwriter for the Apple REIT, and sold over $300 million of an open $2 billion offering. Since 1992 David Lerner has also been the sole underwriter and sold nearly $6.8 billion of Apple REIT securities to its approximately 122,600 DLA customer accounts. DLA earns 10 percent of all offerings of Apple REIT securities as well as other fees. Apple REIT sales have generated $600 million for DLA, accounting for 60 to 70 percent of DLA's business annually since 1996.
If you invested in Apple REITs through David Lerner and wish to discuss your legal rights, please call me directly for a confidential and free consultation at (561) 659-8802.
Stein & Stein, P.A. has extensive experience representing defrauded investors nationwide in securities arbitration matters. More about the firm is available on its website at: www.steinsteinlaw.com.