Investment Firm DLA Sued Over $6B REIT Ponzi Scheme

Law360, New York (June 20, 2011, 8:41 PM EDT) -- David Lerner Associates Inc. was hit with a putative class action in New Jersey on Monday by Apple REIT shareholders who claim the investment firm misled elderly and unsophisticated investors in a $6 billion Ponzi scheme.

The suit claims David Lerner misrepresented information on the Apple REIT business model, did not disclose the risks associated with investing in the 10 real estate investment trusts and failed to disclose the Apple REITs were being sold at artificially high prices.

"Without knowing the true nature of the Apple...
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