David Lerner Associates Investment Advisor misrepresented himself, selling me an overconcentration of high risk illiquid investment securities which were unsuitable for my investment needs. Syosset, New York
The problem with David Lerner Associates is not necessarily the security product (Apple REIT), but that their salespeople go around selling it in large volumes to people on fixed income and disability, therefore creating a portfolio that is illiquid and over concentrated, building accounts that are unsuitable for their investment needs.
They make a fortune in commission, and make you think that they have your best financial interest in mind.
Meanwhile, if you question their Chief Compliance Officer and Chief legal Council, they immediately burst out in defense, pointing out that they have no fiduciary responsibility toward your investment portfolio. Somehow, you never hear that when they are getting you to sign their contracts and agreements, but they make sure it is in the fine print.
What a joke, these guys are crooks in my opinion, and I have had legislators from the Senate banking Committee and other organizations investigating them. I spoke with one older lady who thought she had been sold Apple computer stock, these charming guys prey on the trusting and unknowing senior citizens. They are disgusting predators.
DO NOT invest with anyone who is not a certified and licensed Investment Advisor with the Securities and Exchange Commission unless you are financially savvy and know exactly what you are buying!!!
The government attempts to separate and define broker/dealers and Investment Advisors with specific legal requirements, explicitly for the reasons I've pointed out above. Unfortunately, many in the "investment" business have learned how to twist and dodge the rules to satisfy their own greed. Take my word; I lost control of a $1,200,000.00 portfolio that was sold to me by a David Lerner wolf hiding in sheepskin. It has had a devastating effect on my life and my family.
Now my brother has been told that he can only redeem 62% of his portfolio, he is elderly and disabled, and was always told that he could get back 100% of his investment when needed.
1 Updates & Rebuttals
Bruce
New York,New York,
United States of America
Stephanie Walcoe is a TOTAL CROOK
#2Consumer Comment
Thu, June 30, 2011
If you are looking to invest in real estate or need to do a 1031 exchange stay far away from David Lerner Associates and especially Stephanie Walcoe, the wife of the executive vice president of the company. Stephanie will promise you the rosiest of scenarios with the lowest cost but unfortunately after the documents are signed and the check is cashed you find out it was anything but true. Then, after she has as much of your money as she can possibly steal, she will disappear to the nail salon and wont return your phone calls. These guys leverage real estate using over 90% debt, through first and second mortgages. Stephanie shows you how good the revenue stream is and the dividends youll earn so that the debt seems inconsequential. Well Im here to tell you its nothing like Stephanie Walcoe says it is.
The property I bought a share of was a complete bust, but her presentation was that it was the deal of a life time. All the generous revenue I was going to make never materialized. When I questioned her she gave me every song in the book until she wouldnt even take my calls. I cant begin to tell you how many thousands of dollars I had to come up with so I dont lose my investment. The other partners in the property are also disillusioned and angry.
I did a 1031 exchange. I had done very well on my own in real estate and this is my retirement nest egg. My wife and I are losing sleep wondering if well have anything left. I cant even sell my share although Stephanie made it sound like it wouldnt be a problem with her contacts and sources if I wanted to sell down the road. She babbled something about the bad market whenever I brought it up.
They say a fish stinks from the head well that must be true for David Lerner Associates. They tout their decades of experience which is laughable. They have a few guys and they added up each persons years in real estate investments. Heck if there was an office of 50 one year rookies they could say they had 50 years of real estate experience! If this report spares one person from the financial problems and the anxiety about losing your retirement nest egg to a shyster like Stephanie, then it is worth it. Stephanie Walcoe has a Wall St. background, maybe Bernie Madoff was her mentor. Im sure Bernie would be proud of her.