FINRA Targets Investment Firm DLA Over $2B REIT

Law360, New York (May 31, 2011, 2:51 PM EDT) -- The Financial Industry Regulatory Authority hit investment company David Lerner & Associates Inc. with an administrative complaint Tuesday, claiming the privately held broker-dealer lured investors to a $2 billion real estate investment trust with misleading information.

DLA sold more than $300 million worth of shares in Apple REIT Ten without first vetting the nontraded trust to determine whether it was suitable for investors, according to FINRA. The company, which is the trust's sole underwriter, also improperly marketed the investment by citing performances of past Apple real...
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