NEW YORK, Aug. 29, 2011 (GLOBE NEWSWIRE) -- Napoli Bern Ripka Shkolnik, LLP (NBRS) filed an arbitration claim on behalf of an elderly beneficiary of a trust against David Lerner Associates, Inc. ("David Lerner") for unsuitable recommendations, misrepresentations and other violations in connection with the Apple Real Estate Investment Trusts (REITs). Since 1992, David Lerner has earned nearly $600 million in commissions for selling the Apple REITs. NBRS is currently investigating Apple REIT Six, Apple REIT Seven, Apple REIT Eight, Apple REIT Nine and Apple REIT Ten, which almost exclusively invested in extended stay hotels. According to the complaint, the Apple REITs are alleged to be improperly valued and were sold to investors through misleading practices.
On May 27, 2011, FINRA's Department of Enforcement filed a complaint against David Lerner for the sale of the Apple REITs and alleged David Lerner targeted unsophisticated and elderly customers, recommended unsuitable investments without adequate due diligence, made material misrepresentations and omissions, and maintained unfair trade practices. According to FINRA's complaint, David Lerner priced the Apple REITs on client's statements at $11 per share despite major fluctuations in the commercial real estate market, net income declines, increased leverage through borrowings, and return of capital to investors through distributions. The beneficiary of the trust, like many other investors allegedly, was not made aware of these risks and now sues to recover the initial investment.
The law offices of Napoli Bern Ripka Shkolnik, LLP are available to represent defrauded David Lerner and Apple REIT investors. Napoli Bern Ripka Shkolnik, LLP attorneys have successfully represented thousands of investors in claims against their brokers and broker-dealers for claims, including suitability, misrepresentation and/or omissions, churning, negligence, breach of contract, breach of fiduciary duty, and other violations of the law. If you invested in:
Apple REIT 6
Apple REIT 7
Apple REIT 8
Apple REIT 9
Apple REIT 10
Call Napoli Bern Ripka Shkolnik, LLP today for a free consultation.
* Prior results are no guarantee of future results in any case.
CONTACT: Napoli Bern Ripka Shkolnik, LLP
Securities & Commercial Litigation Department
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