CNN Money References Apple REITs and David Lerner Associates in Article Entitled "Protecting your Parents: Keep the Sharks at Bay"

A recent CNN Money article entitled "Protecting your parents: Keep the sharks at bay" on inappropriate investments sold to seniors discusses the Apple REITs sold by David Lerner Associates.

A full link to the article is here: http://money.cnn.com/2011/08/10/retirement/protecting_parents.moneymag/index.htm?iid=HP_River

The fourth section of the article entitled "PITCH NO. 4: "I can get you 8%."' discusses the promise of guaranteed, high returns that are used to attract older investors to risky, complicated financial products that may not be suitable for their investment needs.  The article goes on to discuss how David Lerner Associates have made over $600 million selling non-traded REITS over the past fifteen years, and how FINRA recently filed an enforcement action against the firm for allegedly targeting "unsophisticated and elderly" investors and using misleading information in connection with these potentially unsuitable investment recommendations.

Although founder David Lerner told Money Magazine that FINRA that his firm discloses the risks of a non-traded REIT in hundreds of pages of prospectuses, these risk disclosure documents may be overshadowed by the oral misrepresentations of its investment counselors.  David Lerner even goes as far to say that "In 18 years, I don't recall one client complaint", which is certainly a stretch to say the least.  The FINRA has disciplined the firm on at least five occasions for various infractions, including in 2005 when FINRA disciplined the firm for misleading investors in marketing materials that overstated its investment prowess.

Even in light of this article, there may hope for Apple REIT investors. If you are an investor who is trying to get out of the Apple REITs, please contact one of our attorneys at 312-332-0000 to discuss your recovery options.  Our attorneys are representing investors who have suffered losses investing in the Apple REITs along with those who are seeking to rescind (get out of) their investment in these products.

Eccleston Law represents individual and institutional investors nationwide to recover their investment losses caused by unsuitable investment recommendations, breach of fiduciary duty, negligence or other misconduct. We have extensive experience representing investors in arbitration and litigation disputes with securities broker-dealers and investment advisory firms, and have recovered tens of millions of dollars for investors.