David Lerner Associates agreed to pay a $650,000 fine for the sale of unsuitable REITs to its investors and other violations. Very little of the fine will compensate investors for their losses. Instead, investors suffering losses contact a private attorney. For a free, confidential consultation, investors can call Jeffrey Pederson at 1-866-817-0201.
The non-traded REITs at issue in the regulatory action were REITs now known as Apple Hospitality REIT investments. The offerings included are Apple 7, Apple 8 and Apple 9.
Suitability violations are for the recommending of investments that are too risky, complicated or volatile for an investor considering the investors objectives, risk tolerance and investment sophistication. Non-traded REITs such as Apple are generally only suitable for only a limited slice of the investing public. Investors, including those looking for either stability, income, low risk, preservation of capital or liquidity from this investment, were likely inappropriately sold this investment.
The agreement to settle the charges was in the form of a consent order entered into with New Jersey regulators. Of the fine, $100,000 went to pay for costs and $50,000 was to pay for investor education programs.
More information on the fine and the regulatory action can be found at the following link.
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