Corporate & Securities Law

The attorneys at Eccleston Law have expanded their investigation of Syosset, New York based broker-dealer David Lerner Associates, Inc. for the sales of Apple REITs and CMOs to investors in, among other places, New York and Florida.

The firm has launched a new website http://www.davidlernerlosses.com/ to help educate those investors who may have suffered losses investing in Apple REITs, CMOs, or other investments recommended by David Lerner Associates about their recovery options. Eccleston Law is actively seeking those who have suffered losses or who have information about David Lerner Associates' sales practices to contact our attorneys.

David Lerner, who is well known in the greater New York City area for his ?Take a Tip from Poppy? radio segments, is the president of David Lerner Associates. According to its website, David Lerner Associates regularly holds financial investment seminars throughout the New York metropolitan area and in Florida to attract new investors.

Upon information and belief, certain David Lerner Associates salespeople may have sold investors securities or investment products carrying high commissions that may have been unsuitable for the investor's needs. These investment products may include real estate investment trusts (?REITs?), collateralized mortgage obligations (?CMOs?) and Real Estate Mortgage Investment Conduits (?REMICs?).  

According to its website, since 1993 David Lerner Associates has been involved in the underwriting of seven Apple REITs, including the following:

• Apple Suites
• Apple Hospitality Two
• Apple Hospitality Five (purchased by Inland American)
• Apple REIT Six
• Apple REIT Seven
• Apple REIT Eight
• Apple REIT Nine
• Apple REIT Ten

David Lerner Associates is believed to have underwritten at least seven Apple REITs. Some of the Apple REITs are believed to be closed to new investors and are not traded on a public market.

David Lerner Associates also is believed to have its own family of funds known as the ?Spirit of America? funds, which include the following:

• Spirit of America Real Estate Income and Growth Fund
• Spirit of America Large Cap Value Fund
• Spirit of America High Yield Tax-Free Bond Fund
• Spirit of America Income Fund

Last year, FINRA charged David Lerner Associates with overcharging investors on the sale of municipal bonds and mortgage securities.  The firm has also been previously fined by FINRA?s predecessor, the NASD.  In 2004, the NASD fined David Lerner Associates for sales contests that promoted certain proprietary mutual funds, variable annuity, and variable life insurance products. In 2005, the firm was fined by the NASD for advertisements that exaggerated the firm?s investing record.  In 2006, the firm was also fined for violating disclosure rules in connection with the sale of variable life insurance policies and annuities.

If you have lost money investing with David Lerner Associates in an Apple REIT, a Spirit of America fund, a CMO, or a REMIC, or if you are unable to redeem an Apple REIT or other investment product that you purchased through David Lerner Associates, you may be entitled to recovery through securities arbitration.

Eccleston Law represents individual and institutional investors 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.

If you are an investor that has suffered losses investing with David Lerner Associates in an Apple REIT or CMO, or if you have any information about the firm?s sales practices, please contact Jim Eccleston at the Eccleston Law Offices at 312-332-0000.