NEW YORK, June 22, 2011 (GLOBE NEWSWIRE) -- Napoli Bern Ripka, LLP has been investigating claims that broker-dealers are improperly placing unsuspecting investors into non-listed REITs. Non-listed REITs have recently begun to draw the attention of regulators and dissatisfied investors alike. Regulators have become increasingly concerned as brokers potentially mislead investors by recommending non-listed REITs as low-cost and low-risk investments.
Non-listed REITs are attractive cash cows for some brokerage firms. It is not uncommon for 15% of an individual's investment to be consumed by commissions and fund expenses padding the bottom lines of brokerage firms rather than being put to work for investors. Because non-listed REITs do not trade on exchanges, they are rarely revalued and may appear very stable to investors.
One REIT that is under investigation by regulators is Apple REIT, sold by David Lerner & Associates (DLA). DLA has come under fire by the Financial Industry Regulatory Authority (FINRA) for its Apple REIT sales practices of "targeting unsophisticated and elderly customers with unsuitable sales of the illiquid security." In its action against DLA, FINRA also noted that DLA "earns 10 percent of all offerings of Apple REIT securities as well as other fees. Apple REIT sales have generated $600 million…accounting for 60 to 70 percent of DLA's business annually since 1996."
Napoli Bern Ripka, LLP is investigating the following REITs:
Napoli Bern Ripka, LLP has successfully advocated for its clients in a wide variety of claims involving financial products, brokerage services, and commercial disputes. The firm does not charge a legal fee unless it recovers money for its clients. To learn more about Napoli Bern Ripka, LLP services contact the firm at (212) 267-3700.
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.
Adam J. Gana Tel: (212) 267-3700 Email: