In its formal complaint, the Financial Industry Regulatory Authority (FINRA) has accused the Syosset, New York-based brokerage firm, David Lerner Associates (DLA) of investment fraud. FINRA cites that DLA marketed real estate investment trust shares to unsophisticated and elderly investors by using misleading information to lure unsuspecting investors to the $2 billion Apple REIT Ten offering. DLA allegedly failed to take into account whether the shares were suitable for its customers. FINRA sued DLA on Tuesday, May 31, 2011, accusing the firm of misleading investors and offering unsuitable products in the $2 billion real estate fund. FINRA claims that DLA should have conducted more due diligence on the offering. DLA has argued against FINRA’s accusations. In a statement, DLA denies the accusation.Last year, FINRA accused DLA of overcharging customers on sales of mortgage securities and municipal bonds. That case is still pending.
Contact an experienced investment fraud lawyer at the law firm of David P. Meyer & Associates, if you have lost money or had your funds frozen in the Apple REIT recommended by David Lerner. Our firm represents clients nationwide in securities litigation, arbitration and mediation claims. 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 us or filling out our online form. Be sure to order our free book, Five Signs of Investment Fraud…And What to Do if it’s Happened to You.