ATLANTA, June 6, 2011 (GLOBE NEWSWIRE) -- James A. Dunlap Jr. & Associates LLC announces it is actively investigating investor claims against David Lerner & Associates arising from the firm's Apple REITs.
On May 27, 2011, the Financial Industry Regulatory Authority (FINRA) filed a complaint against David Lerner & Associates, Inc. (DLA), of Syosset, NY, charging the firm with soliciting investors to purchase shares in Apple REIT Ten, a non-traded $2 billion Real Estate Investment Trust (REIT), without conducting a reasonable investigation to determine whether it was suitable for investors, and with providing misleading information on its website regarding Apple REIT Ten distributions. DLA has sold and continues to sell Apple REIT Ten targeting unsophisticated and elderly customers with unsuitable sales of the illiquid security.
Since January 2011, as sole underwriter for Apple REIT Ten, David Lerner & Associates has sold over $300 million of an open $2 billion offering of the REIT's shares. Apple REIT Ten invests in the same extended stay hotel properties as a series of other Apple REITs closed to investors.
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. As sole distributor, David Lerner & Associates did not question the Apple REITs' unchanging valuations despite the economic downturn for commercial real estate.
The issuance of a disciplinary complaint represents the initiation of a formal proceeding by FINRA in which findings as to the allegations in the complaint have not been made, and does not represent a decision as to any of the allegations contained in the complaint. Under FINRA rules, a firm or individual named in a complaint can file a response and request a hearing before a FINRA disciplinary panel. Possible remedies include a fine, censure, suspension or bar from the securities industry, disgorgement of gains associated with the violations and payment of restitution.
Specific information about the David Lerner & Associates claims can be reviewed at http://www.jamesdunlaplaw.com/cms.php?id=87.
If you lost money in the David Lerner Apple REITs, please contact of James A. Dunlap Jr. & Associates LLC at 404-354-2363 for a free consultation. You may visit the firm's web site at http://www.jamesdunlaplaw.com.
CONTACT: Jim Dunlap, Principal James A. Dunlap Jr. & Associates LLC 801 W Conway Drive NW Atlanta, Georgia 30327 Phone: 404-354-2363 Fax: 404-745-0195 email@example.com