Florida Securities Fraud Lawyer Blog

Broward Man Accused of Running a Ponzi Scheme

Mon, 20 Feb 2012 10:27:22 -0500

A Ft. Lauderdale man, George Elia, who is currently under investigation by the Florida Office of Financial Regulation, is also facing a $4 million lawsuit alleging that he has been running a Ponzi scheme. In October 2011, Michael Imbesi of San Diego, along with his father, step-mother and sister, filed the Broward Circuit Court lawsuit against Elia and his company, International Consultants & Investment Group Limited Corp., after repeated requests to withdraw their money were met with delay tactics and excuses.

According to the Complaint, Elia promoted himself as an investment adviser able to generate annual profits of 20 percent on average. Court documents show that Michael Imbesi began investing with Elia in 2005 and for years, he received statements showing returns of 4 to 7 percent per quarter. Pleased with his returns, Imbesi recommended Elia to relatives, including his father and step-mother.

According to the Complaint, in the spring of 2011, Elia became inconsistent in distributing money, blaming the delays on medical issues and a hacked e-mail account. The Imbesis became nervous and asked for their principal back, but Elia only responded with excuses.

Court documents reflect that an audit of Elia's business records found significant irregularities, including the use of business funds to pay Elia's personal expenses. According to court records, the bank accounts for Elia's businesses were frozen pending the outcome of the litigation. At his deposition in November 2011, Elia answered standard questions about his background, but refused to answer additional questions, and invoked his Fifth Amendment right to remain silent.

According to a real estate broker who assisted Elia in securing a 3rd mortgage on his Ft. Lauderdale home in January 2012, within two weeks of securing the $125,000 mortgage, she discovered that Elia and his wife had moved out of the home during the night.

Investors nationwide who have been the victims of a Ponzi scheme, may contact the Florida securities arbitration lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

CitiMortgage Agrees To Settle Whistleblower Lawsuit For $158.3 Million

Thu, 16 Feb 2012 15:07:22 -0500

The United States Attorney for the Southern District of New York and the General Counsel of the U.S. Department of Housing and Urban Development ("HUD") announced that CitiMortgage, Inc. ("CitiMortgage"), a subsidiary of Citibank, N.A., has agreed to settle a qui tam lawsuit for $158.3 million. The government joined the whistleblower lawsuit filed in August 2011 by relator Sherry Hunt, CitiMortgage's vice president of quality assurance.

The Complaint, filed under the False Claims Act, alleged that for more than six years beginning in 2004, CitiMortgage failed to comply with the Federal Housing Administration ("FHA") Direct Endorsement Lender Program. According to the Justice Department, in the settlement, CitiMortgage admitted its failure to comply with HUD-FHA requirements by submitting certifications stating that certain loans were eligible for FHA mortgage insurance when they were not and, as a result, HUD incurred losses when the loans, that should never have been endorsed, defaulted.

If a Direct Endorsement Lender approves a mortgage for FHA insurance and the borrower later defaults on the mortgage, the mortgage holder may submit an insurance claim to HUD for the costs associated with the defaulted mortgage, which HUD must pay. Neither the FHA nor HUD reviews a mortgage prior to its approval for FHA insurance. As such, CitiMortgage, as a Direct Endorsement Lender, was required to follow program rules to endure it was properly underwriting and endorsing mortgages for FHA insurance.

The whistleblower alleged that since 2004, CitiMortgage has endorsed nearly 30,000 mortgages with a value of $4.8 billion for FHA insurance, but repeatedly submitted knowingly or recklessly false certifications regarding their eligibility for FHA insurance. The Complaint further alleged that CitiMortgage failed to perform basic due diligence; failed to verify information in the loan file regarding the borrower's ability to repay the mortgage; and repeatedly endorsed mortgage loans that contained serious defects, did not comply with HUD's underwriting standards, and were not eligible for FHA insurance.

The Complaint also stated that almost one-third of the mortgages originated or underwritten by CitiMortgage since 2004 have gone into default, resulting in insurance claim payments by HUD of nearly $200 million.

Of the $158.3 million settlement amount, the whistleblower will receive $31 million as a reward.

If you have any firsthand knowledge, information, or evidence related to any federal, state, county or city government fraud, you should speak with an experienced qui tam lawyer who can help you understand your legal rights and help you obtain the compensation you deserve.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or e-mail kelly@mccaberabin.com.

Gunnison Energy and SG Interests Pay $550,000 to Settle Whistleblower Action

Thu, 16 Feb 2012 11:11:32 -0500

The Department of Justice announced that Gunnison Energy Corporation ("GEC"), an affiliate of Oxbow Corporation, and SG Interests I Ltd. and SG Interests VII Ltd. (collectively "SGI") have agreed to settle antitrust and False Claims Act allegations for $550,000, with each firm to pay $275,000. The claims relate to an alleged agreement by the companies not to compete in bidding for four natural gas leases sold at auction by the U.S. Department of Interior's Bureau of Land Management ("BLM").

According to the Justice Department, the investigation resulted from a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by whistleblower Anthony Gale. The federal government partially intervened in the whistleblower's suit.

The BLM issues leases for oil and gas exploration on land owned or controlled by the federal government. In order to obtain fair and competitive prices for its leases, BLM auctions off the leases to the highest bidder. The winning bidder is required to certify that its bid was not the product of collusion with another bidder.

According to the qui tam complaint filed in the U.S. District Court for the District of Colorado, GEC and SGI were separately developing natural gas resources in Western Colorado. The Complaint alleges that in 2005, GEC and SGI agreed, in writing, that only SGI would bid at the BLM auctions and then assign an interest in all of the acquired leases to GEC. The government claims that the agreement was not part of any procompetitive or efficiency-enhancing collaboration. The government also claims it would have received more revenue for the four leases if GEC and SCI had competed at the auctions.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or e-mail kelly@mccaberabin.com.

FINRA Fines Citigroup $750,000 For Failing To Retain E-Mails

Thu, 16 Feb 2012 10:12:54 -0500

The Financial Industry Regulatory Authority ("FINRA") announced it has censured and fined Citigroup $750,000 for the firm's failure to retain millions of e-mails sent by or to approximately 2,800 Citigroup brokers.

Pursuant to a Letter of Acceptance, Waiver and Consent ("AWC") submitted by Citigroup, the failure was the result of a technical glitch that occurred when Citigroup updated its e-mail system from a backup tape-based system to a new journaling-based system. After the upgrade, three of Citigroup's e-mail servers did not function as expected and, as a result, did not transmit e-mails to the archive for any of the individuals assigned to those e-mail servers.

According to FINRA, Citigroup's e-mail retention deficiencies impacted at least five FINRA investigations. The AWC also included a finding by FINRA that deficiencies in Citigroup's supervisory procedures relating to electronic communications resulted in the failure to timely detect the e-mail retention problems.

Investors nationwide who have incurred recoverable investment losses due to specific failures by stockbrokers and brokerage firms, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

LPL Financial Hit With $1.4 Million Award

Wed, 15 Feb 2012 11:08:30 -0500

Last week, a Financial Industry Regulatory Authority ("FINRA") arbitration panel awarded an elderly California couple $1.4 million for losses in two tenant-in-common ("TIC") investments. TICs are a form of real estate ownership in which two or more parties have a fractional interest in the property.

According to the investors' lawyer, LPL Financial, LLC ("LPL") knew that the TICs boosted their yield with financial "tricks." In their FINRA complaint, investors Heinrich and Araceli Hardt alleged that LPL committed securities fraud, made material misrepresentations and committed elder abuse, among other things. They had sought $8 million in damages.

According to the arbitration testimony, the TICs at issue, Heron Cove, LLC and Braintree Park, LLC, promised investors monthly income checks, purportedly generated by income-producing properties. According to the Hardts' attorney, LPL knew that the Heron Cove, LLC and Braintree Park, LLC properties were not producing any natural cash flow and, after a couple of years, the money ran out.

In addition to the FINRA arbitration matter, the Hardts filed a federal lawsuit against the sponsor of the deals, Direct Invest LLC. The pleadings filed in the pending lawsuit claim that the offering documents for the TICs contained multiple false and misleading statements regarding the property manager, projected cash flows, appreciation potential, superiority of property location, current and projected conditions for the Boston office market, strength of the leases, and use of the investment proceeds.

Investors nationwide who suffered a loss as a result of a tenant-in-common investment purchased through a FINRA member firm, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

TriWest Healthcare Settles Qui Tam Action for $10 Million

Fri, 10 Feb 2012 11:33:16 -0500

TriWest Healthcare Alliance Corporation, a contractor for TRICARE, has agreed to resolve a qui tam, or whistleblower, lawsuit for $10 million. TRICARE is the medical benefit plan for the U.S. military, retirees, their dependents and reserve components.

The settlement resolves a qui tam lawsuit filed by former TriWest employees, Judi Jerdee, Deborah Thornton, Linda Glassgow and Paige Fiorillo under the False Claims Act. The United States partially intervened in the lawsuit on August 29, 2011.

The whistleblower complaint alleged that from 2004 to 2010, TriWest submitted claims to TRICARE for the full amount billed by service providers, even though TriWest had negotiated discounts with the service providers pursuant to contractually binding letters of agreement.

Collectively, the whistleblowers will receive $1.7 million as their share of the government's recovery.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or e-mail kelly@mccaberabin.com.

Boca Raton Resident Sentenced for Selling Fraudulent Business Opportunities

Thu, 09 Feb 2012 11:02:58 -0500

The Department of Justice and U.S. Postal Inspection Service announced that Boca Raton, Florida resident, James Cummings ("Cummings"), was sentenced to one year and a day in prison in connection with a fraudulent coffee machine business opportunity.

The government alleged that, from December 2003 to February 2008, in return for a minimum investment of $10,000, Cummings sold potential investors a business package that purportedly included coffee vending machines, locations in which to place the vending machines, and on-going support in the operation of the machines. The government also alleged that the buyers incurred a total loss on their investments and some never received the purchased coffee machines.

As a part of his guilty plea, Cummings admitted making false claims to potential investors regarding potential profits, that they would recoup their entire investment in 12 to 18 months, and that the locations they would be given to place their coffee machines would be high traffic, high profit locations.

In addition to one year and a day in prison, Cummings was sentenced to three years supervised release and ordered to pay $137,000 in restitution. Cummings pleaded guilty on November 29, 2011 to conspiracy to commit mail fraud for his involvement in three Florida companies: M & D Gourmet Coffee, Inc. of Boca Raton, Florida; Coffee Heaven LLC of Deerfield Beach, Florida; and Divino Trio Coffee and Vending Company of Ft. Lauderdale, Florida.

According to the Justice Department, Cummings' co-conspirator, Manuel Rodriguez, was convicted of conspiracy and wire fraud. In December 2011, he was sentenced to 120 months in prison.

Investors nationwide who have incurred losses, and who may have a FINRA arbitration claim, may contact the Florida securities arbitration lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

Dava Pharmaceuticals to Pay $11 Million to Settle Whistleblower Suit

Thu, 09 Feb 2012 10:33:12 -0500

The Justice Department announced that Dava Pharmaceuticals ("Dava") has agreed to pay $11 million to settle a qui tam, or whistleblower, suit alleging that it violated the False Claims Act.

The whistleblower, Jim Conrad, alleged that, between October 1, 2005 and September 30, 2009, Dava knowingly underpaid its drug rebate obligations under the Medicaid Prescription Drug Rebate Program ("Rebate Program"). Under the Rebate Program, drug companies are required to make quarterly rebate payments to state Medicaid programs based on whether a drug is a name brand or generic drug, and the difference between what the Medicaid program paid and the prices paid by other purchasers.

According to the complaint, in order to decrease the rebate payments due from Dava, Dava treated its versions of the drugs cefdinir, clarithromycin and methotrexate as generic rather than name brand drugs. The complaint also alleged that Dava incorrectly calculated the average manufacturer prices for these same drugs.

The settlement resolved a qui tam action that was filed in the United States District Court for the District of Maryland. Under the terms of the settlement, the United States government will receive $5.7 million and Medicaid participating states will receive over $5 million. The whistleblower will receive 15 percent of the settlement proceeds as a reward.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or e-mail kelly@mccaberabin.com.

14 Hospitals Settle False Claims Act Litigation For $12 Million

Wed, 08 Feb 2012 09:40:35 -0500

The Department of Justice announced that 14 hospitals in New York, Mississippi, North Carolina, Washington, Indiana, Missouri and Florida have agreed to settle a False Claims Act lawsuit regarding allegations that they overbilled Medicare for kyphoplasty procedures performed between 2000 and 2008. Kyphoplasty is a procedure that is used to treat some kinds of spinal fractures usually caused by osteoporosis.

The Department of Justice said the largest portions of the $12 million settlement are being paid by four hospitals associated with Adventist Health System in Florida ($3.9 million), Plainview Hospital in New York ($2.3 million), North Mississippi Medical Center in Mississippi ($1.9 million), Mission Hospital in North Carolina ($1.5 million) and Wenatchee Valley Medical Center in Washington ($1.2 million). Six other hospitals will pay the remainder of the settlement amount.

The government's investigation began in 2008 after a qui tam action was initiated by Chuck Bates and Craig Patrick, two former employees of Kyphon, a manufacturer of products used in kyphoplasty. The qui tam complaint named Kyphon (acquired by Medtronic Spine in 2007) and numerous hospitals. The whistleblowers alleged that Kyphon suggested that hospitals do kyphoplasties as inpatient procedures to bulk up their Medicare payments even though the procedures could have often been done as outpatient procedures.

According to the Justice Department, since the initial qui tam action was filed in 2008, it has settled investigations into more than 40 hospitals related to kyphoplasty overbilling for $39 million, in addition to a $75 million settlement with Medtronic Spine. The whistleblowers will get around $2.1 million from the settlements.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or e-mail kelly@mccaberabin.com.

U.S. Charges Medical Imaging Company With Paying Kickbacks In Return For Medicare Test Referrals

Tue, 07 Feb 2012 11:08:10 -0500

The United States has filed suit against Universal Imaging, Inc. ("Universal") and its current and former owners, Phillip J. Young ("Young") and Mark Lauhoff ("Lauhoff"), under the False Claims Act seeking $150 million in damages and penalties. According to the U.S. Department of Justice, many of the facts in the case were first brought to the government's attention when whistleblowers, Dr. Richard Chesbrough, a radiologist, and his wife Kim Chesbrough, a former employee of Universal, filed a qui tam action against Universal.

The government's complaint alleges that Universal, Young and Lauhoff, violated numerous Medicare rules relating to adequate supervision of diagnostic tests and generated 90% of their business by paying illegal kickbacks to numerous physicians. The U.S. Attorney announced that fourteen physicians, who were paid by Universal for referrals, reached a settlement with the government and will return $1.56 million in kickbacks.

The government's complaint also names Dr. Gwendolyn Washington, a primary care physician, as a defendant. According to the complaint, Dr. Washington is alleged to have ordered dangerously high levels of tests involving the injection of radioactive material into patients in order to increase the amount of kickbacks she received. Dr. Washington was also named in related criminal proceeding which resulted in her sentence of 120 months in prison on charges of public corruption, health care fraud and conspiring to illegally distribute prescription drugs.

If you have a claim, contact the Florida whistleblower attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or e-mail kelly@mccaberabin.com.

NASAA Cautions Investors Against Blindly Chasing Higher Returns

Tue, 07 Feb 2012 10:31:05 -0500

Following the recent announcement by the Federal Reserve that interest rates are expected to remain low until at least 2014, the North American Securities Administrators Association ("NASAA") issued a warning to investors to be cautious about investments offering higher returns. The NASAA cautioned that investors should not abandon their slower growing, safe investments in favor of higher yielding alternative investments without fully understanding the risks and terms of the alternative product.

State securities regulators are concerned that individuals who depend on fixed income investments, especially seniors, may be more easily persuaded by unscrupulous salespeople to invest in inappropriate, risky investments or fraudulent schemes. The NASAA's current list of "Top Investor Traps" includes private placement offerings, promissory notes, securitized life settlement contracts, and investments in energy, distressed real estate and precious metals, which may be frauds in disguise.

Investors should remember that risk and reward are tied together. Investments with higher returns carry a higher degree of risk to investors; the lower the return, the lower the risk.

Before making any investment, investors should do their homework, especially for investments that seem to offer unusually high returns compared to other investment options. Investors can verify the legitimacy of many investments through the SEC's online database (http://investor.gov/). Investors can also review the employment and complaint history of a stockbroker through the Financial Industry Regulatory Authority (FINRA)'s BrokerCheck database
(www.finra.org/Investors/ToolsCalculators/BrokerCheck)
and investment advisors at the SEC's Investment Adviser Public Disclosure database (www.adviserinfo.sec.gov).

Investors nationwide who have incurred investment losses, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

Illinois Resident Charged With $4 Million Investment Fraud

Tue, 07 Feb 2012 09:54:26 -0500

The Securities and Exchange Commission ("SEC") charged Illinois resident Kenneth A. Dachman ("Dachman") with misappropriating more than $1.8 million in investor funds and making material misrepresentations to potential investors in connection with offerings for three companies for which he was the Chairman - Central Sleep Diagnostics, LLC, Central Sleep Diagnostics of Florida, LLC, and Advanced Sleep Devices, LLC. The broker for the three offerings, Scott A. Wolf, and his company, Stone Lion Management, Inc., were also charged by the SEC for their roles in selling unregistered securities.

According to the Complaint, between July 2008 and June 2010, Dachman raised $3.5 million from investors in 13 states and overseas on behalf of Central Sleep Diagnostics, a purported provider of outpatient diagnostic sleep studies. The Complaint states that, between December 2008 and April 2010, Dachman raised an additional $568,000 on behalf of Central Sleep Diagnostics of Florida and Advanced Sleep, a purported provider of medical devices.

The SEC alleges that Dachman made numerous misrepresentations to potential investors including, how their funds would be used and his academic and professional backgrounds. The SEC also claims Dachman misappropriated at least $1.8 million of investor funds, representing over 45% of the total funds raised, for such things as a 10,000 square foot home, lavish family vacations, a new Range Rover and other personal expenses.

Florida Resident Convicted in $7 Million Stock Manipulation Scheme

Thu, 02 Feb 2012 10:26:09 -0500

Jonathan Curshen of Sarasota, Florida and San Jose, Costa Rica and Nathan Montgomery of Las Vegas, Nevada were found guilty of conspiracy to commit securities fraud and wire fraud for their roles in a $7 million stock manipulation scheme that defrauded investors.

Curshen was the principal of Red Sea Management ("Red Sea") and Sentry Global Securities ("Sentry"), both located in San Jose, Costa Rica. Red Sea and Sentry provided offshore accounts and facilitated trading in penny stocks. Montgomery was a Las Vegas stock promoter.

According to the Department of Justice, the evidence at trial showed that in early 2007, Curshen and Montgomery schemed to illegally manipulate the stock price of a company called CO2 Tech.

According to the evidence at trial, Curshen, Montgomery and their co-conspirators, Robert Weidenbaum, Timothy Barham, Jr. and Ryan Reynolds, engaged in coordinated trades in conjunction with false and misleading press releases designed to artificially inflate the price of CO2 Tech stock.

According to the evidence at trial, the false press releases made it appear that the company had significant business prospects including Boeing, when it did not. According to the evidence at trial, the press releases and coordinated trades were used to create the appearance of legitimate buying interest by legitimate investors when in reality, Montgomery and his co-conspirators pumped the price of the stock then facilitated sales of the shares through Red Sea and Sentry to unsuspecting investors, including investors in South Florida. The evidence also showed that Montgomery, Weidenbaum, Reynolds and Barham were paid $1 million in cash to participate in the sham stock trades of CO2 Tech.

In addition, the evidence revealed that, from 2003 to 2008, Curshen laundered money through Red Sea and Sentry, including the proceeds from the stock fraud. Curshen was convicted of conspiracy to commit international money laundering in addition to the fraud charges.

Weidenbaum, Barham and Reynolds previously pleaded guilty to conspiracy to commit securities fraud, wire fraud and mail fraud. They are scheduled to be sentenced by Judge Richard Goldberg, United States District Court, Southern District of Florida on May 9, 2012. The sentencing for Curshen and Montgomery by Judge Goldberg is set for May 11, 2012.

Investors nationwide who have incurred investment losses, and who may have a FINRA arbitration claim, may contact the Florida securities arbitration lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

Charles Schwab & Co. Charged With FINRA Violations

Thu, 02 Feb 2012 09:18:54 -0500

The Financial Industry Regulatory Authority has filed a complaint alleging that Charles Schwab & Company ("Schwab") violated FINRA rules by including a provision in its customer agreement requiring customers to waive their rights to participate in class actions against the firm.

According to FINRA's complaint, Schwab changed its customer account agreement in October 2011 to include the class action waiver language, as well as a separate provision requiring customers to agree that arbitrators in FINRA arbitration proceedings would not have the authority to consolidate the claims of multiple parties.

FINRA claims that both provisions violate FINRA rules governing language that its members may include in customer agreements.

Investors nationwide who have suffered an investment loss, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.

FINRA Adds Allegations to Pending Complaint Against David Lerner & Associates

Wed, 01 Feb 2012 09:20:55 -0500

The Financial Industry Regulatory Authority ("FINRA") has amended its pending complaint against David Lerner & Associates ("DLA") to add claims against David Lerner ("Lerner"), personally, and to add allegations that DLA continues to make false and misleading claims to potential investors with regard to Apple REITs, non-traded real estate investment trusts.

FINRA's initial complaint against DLA, filed in May 2011, asserted that DLA made material misrepresentations and omissions in the marketing of Apple REITs. The complaint alleged that DLA marketed the Apple REITs to elderly and unsophisticated investors without determining whether the investments were suitable for the investors.

FINRA's initial complaint further asserted that since at least 2004, shares of the Apple REITS have been unreasonably valued at $11 notwithstanding market fluctuations, declines in performance and leverage increases. FINRA claims that, despite the obvious irregularities in valuation, DLA did not sufficiently investigate the valuation of the REITs prior to marketing them to investors and provided misleading information on DLA's website regarding distributions. In addition, it is believed that DLA represented Apple REITs as safe and liquid, when in fact, they are illiquid and inappropriate for investors looking to access their money. FINRA recently issued an investor alert bulletin about the dangers of non-traded REITs such as the Apple REITs.

According to FINRA's amended complaint filed in December, between April and November 2011, DLA and Lerner made false and exaggerated claims regarding the investment returns, market values and performance of Apple REITs to over 1,000 potential investors during at least four investment seminars. According to FINRA, DLA and Lerner made misrepresentations that a past series of Apple REITs would merge and go public at a price of up to $20, well above the initial $11 offering price, and omitted to disclose that the income from the REITs was insufficient to support the promised 7%-8% returns.

According to FINRA, since January 2011, DLA has recommended and sold more than $442 million of Apple REIT Ten, resulting in sales commissions to the firm of $42 million. FINRA also claims that since 1992, DLA has sold almost $7 billion of Apple REITS which generated approximately $600 million in sales commissions to the firm.

Investors nationwide who have suffered a loss as a result of an investment in Apple REITs, and who may have a FINRA arbitration claim, may contact the Florida securities attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to kelly@mccaberabin.com.