First Apple REIT Arbitration Case Goes Against Lerner

Representing Investors Nationwide

According to an article in yesterday’s Investment News The first of potentially hundreds of arbitration cases relating to the sale of Apple REITS by David Lerner Associates Inc. has been decided in favor of claimants Joseph Graziose and Florence Hechtel. Last week, Financial Industry Regulatory Authority Inc. (FINRA) arbitrator ordered the firm to pay the two individuals $24,450 in recsionary damages with the condition they return the Apple REIT shares. Lerner Associates also will have to reimburse the two claimants for their FINRA arbitraton filing fees. The Financial Industry Regulatory Authority has also filed a regulatory action against the firm regarding the sale of the REITs. According to FINRA, David Lerner & Assoc. sold almost $7 billion worth of the Apple real estate trusts since 1992. For its efforts, the firm received 10% in fees and commissions which generated approximately $600 million in total revenue. The arbitrator’s decision could be an ominous sign given potentially hundreds of other claims already filed or likely to be filed against the firm over the investments. Read the full article here.