Nicholas Schorsch’s Mega REIT American Realty Capital Properties Divulges Alleged Accounting Impropriety
The Peiffer Wolf Carr & Kane investment recovery lawyers are currently investigating Nicholas Schorsch’s nontraded REIT, American Realty Capital Properties (ARCP) to determine whether any violations of the securities laws and regulations occurred, and whether investors lost any money. Last week ARCP reportedly conceded an alleged accounting error, and, as a result, four major broker-dealers including National Planning Holdings Inc. allegedly suspended sales of ARCP to investors.
On October 26, ARCP revealed that its CFO and Accounting Officer had been given the sack after senior management found out that alleged accounting errors slashed its adjusted funds from operations over the first two quarters of 2014 by close to $23 million. Nicholas Schorsch is chairman of ARCP, the leading patron of nontraded REITs. Through September 2014,Schorsch was CEO and chairman of ARCP, until being replaced by David Kay on October 1. Schorsch, however, remains as ARCP chairman.
Phillips Edison Only Product Affected
Phillips Edison was the only product affected by National Planning Holdings trading suspension. Phillips Edison, or Grocery Center REIT II, is a relatively small REIT, with $207 million in total assets. Said REIT is run by the same squad which that has operated successful shopping center REITs in the past.
Investment Recovery Lawyers Investigating
The Peiffer Wolf Carr & Kane securities attorneys often represent investors who lose money as a result of investment fraud misconduct. They are currently investigating ARCP and the possibility of assisting victims with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of ARCP’s alleged improprieties may contact the investment recovery lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.
Broker: Nicholas Schorsch
Status: INVESTIGATED by Peiffer Rosca.
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