In a May 17, 2012, FINRA Arbitration Award, No. 11-4228, investors were awarded rescission in connection with the purchase of shares of Apple REIT Nine through David Lerner Associates. The claimant has alleged misrepresentation and omissions, breach of fiduciary duty, violation of FINRA Conduct Rules, negligence, failure to supervise, breach of contract, and fraudulent misrepresentations.
On May 31, 2012, FINRA alleged that David Lerner & Associates, Inc., of Syosset, NY, was 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.” The fimr allegedly sold Apple REIT Ten “targeting unsophisticated and elderly customers with unsuitable sales of the illiquid security.”
