McCabe Rabin, P.A. is investigating claims that David Lerner & Associates, Inc. (DLA) made material misrepresentations and omissions in the marketing of Apple REITs, non-traded real estate investment trusts. In May, the Financial Industry Regulatory Authority (FINRA) filed a complaint alleging that DLA marketed the Apple REITs to elderly and unsophisticated investors without determining whether the investments were suitable for the investors.
FINRA’s complaint further asserts that since at least 2004, shares of the Apple REITS have been unreasonably valued at $11 notwithstanding market fluctuations, declines in performance and leverage increases. FINRA claims that despite the obvious irregularities in valuation, DLA did not sufficiently investigate the valuation of the REITs prior to marketing them to investors and provided misleading information on DLA’s website regarding distributions. In addition, it is believed that DLA represented Apple REITs as safe and liquid, when in fact, they are illiquid and inappropriate for investors looking to access their money. FINRA recently issued an investor alert bulletin about the dangers of non-traded REITs such as the Apple REITs.
If you suffered losses as a result of an investment in Apple REITs, contact McCabe Rabin for an evaluation of your potential claim at 877-915-4040 or Click Here to fill out our contact form.