New Jersey fines David Lerner Associates for nontraded REIT sales

Firm will pay $650,000 for suitability, compliance and books and records violations

May 26, 2017 @ 12:23 pm

By InvestmentNews

New York-based David Lerner Associates Inc. has signed a consent order from the New Jersey Department of Securities resolving allegations that it unlawfully sold nontraded REITs in the state.

In signing the consent order, the firm agreed to a penalty of $700,000, of which $200,000 was suspended as a result of the firm's cooperation with the state investigation. The firm also was assessed $100,000 for costs, and will pay $50,000 into a fund that will be used by the state for investor education.

The non-traded real estate investment trusts involved in the case were Apple 7, Apple 8 and Apple 9, which owned several hotels. In March 2014, Apple 9 completed a merger with Apple 7 and Apple 8 and changed its name to Apple Hospitality REIT Inc. On May 18, 2015, company's shares were listed and began trading on the New York Stock Exchange.

In the consent agreement, David Lerner Associates said that "at current traded levels and including distributions received, no shareholder who was an investor in the initial public offering of any of the three Apple REITs has experienced a loss on a total return basis."

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Retirement: it's no longer about feeding pigeons from a park bench.

Today's retiree's expect so much from retirement than previous generations and advisers are in prime position to help their clients what's important and what's not.

Latest news & opinion

Genstar Capital buys majority stake in Cetera Financial Group

The private-equity firm has previously invested in such companies as Mercer Advisors and AssetMark.

Cetera Financial Group close to announcing its acquisition by private equity

Details of sale to one or more P-E firms could be announced as early as today.

10 best states for retirement

When it comes to places to retire, here are the 10 best states for enjoying your golden years.

Focus Financial raises goal for IPO to $600 million

Company's revised goal from $100 million could be a sign RIA valuations are rising.

CFA Institute adding crypto, blockchain to curriculum

Subjects will be added to its Level I and II coursework for the first time next year.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print