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May 25, 2017

Posted  May 25, 2017

New Jersey announced that David Lerner Associates, Inc. (DLA), a New York firm with offices in Princeton and Teaneck, has agreed to pay $650,000 to resolve a Bureau of Securities investigation into its sales of non-traded real estate investment trusts (REITs) in New Jersey. In a Consent Order with the Bureau, the Syosset NY-based DLA, agreed to pay civil penalties and other costs to resolve the Bureau’s findings that agents of the firm sold non-traded REITs to unsuitable investors, that DLA supervisors approved those sales, and that the firm failed to make and keep adequate records for sales of non-traded REITs. The Bureau received complaints from investors regarding DLA’s sale of three non-traded REITs – Apple REIT Seven, Inc., Apple REIT Eight, Inc. and Apple REIT Nine, Inc. – which raised an aggregate of $4 billion between March 2006 and December 2010 to purchase hotels. The Bureau contacted DLA regarding potential failures in the firm’s compliance system with regard to sales of the three REITs and DLA agreed to undertake a comprehensive review of its NJ sales. NJ