FINRA Sanctions Financial Trader

Wed, October 31st, 2012 - 6:11 am - By Gordon Basichis

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As Corra Group conducts a fair share of business research and financial vetting as part of its background checking program, we are going to be calling attention to various articles detailing with possible financial malfeasance and sanctioning by the governing financial bodies.

According to an article on Association of Corporate Counsel….”David Lerner Associates, a private investment company which claims to have $9 billion in assets under management, David Lerner, its founder, and William Mason, its head trader, were sanctioned by FINRA. The charges and sanctions relate to unfair sales practices in connection with the sale of shares in Apple REIT Ten, a non-traded $2 billion Real Estate Investment Trust or REIT and excessive markups charged over a 30 month period on the sale of municipal bonds and collateralized mortgage obligations or CMOs….

“On both charges the firm was fined $2.3 million and will pay $12 million in restitution to customers involved. In addition, Mr. Learner was suspended from the securities industry followed by a two year suspension from acting as a principal. He was also directed to pay a fine of $250,000. Mr. Mason was suspended for six months from the securities industry and directed to pay a $200,000 fine.”

Corra Group works with its clients to help assure that its potential associates and those involved in possible partnerships and co-ventures do not have records in their histories that would give our clients pause to engage.  We conduct a variety of background checks, both on the  principals and the corporate entities.

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