Nontraded REIT Industry Rocked by Reports that REIT Czar Nicholas Schorsch Allegedly Had Hand in $23 Million Accounting Error at ARCP

stockbroker fraud attorneysDo you believe that you have lost money as a result of an investment with Nicholas Schorsch or one of his nontraded REITs? The Peiffer Wolf Carr & Kane investor rights lawyers are actively investigating the Nicholas Schorsch nontraded REITs on behalf of investors, following media reports about allegations of misconduct.

The more investors look at the Nicholas Schorsch nontraded REIT empire, the more they begin to the see a boom and bust cycle of the industry’s biggest rock star.

Push came to shove when Schorsch’s accounting executive, Lisa McAlister, who joined the company in November 2013, reportedly said that Schorsch allegedly ordered ARCP‘s chief financial officer, Brian Block, to alter the company’s quarterly financial results, according to court documents currently under review by attorneys Jason Kane and Joe Peiffer.

According to reports from the Massachusetts Securities Division currently under review by attorneys Joe Peiffer and Jason Kane, after the error was eventually disclosed, Block and McAlister jumped from the ARCP ship.

Said reports also note that Ms. McAlister reportedly stated in her complaint that in February 2014, she noticed ARCP had improperly calculated its adjusted funds from operations, or AFFO, in such a manner that overstated results in the first quarter of 2014 by 3 cents per share.

In addition, the reports claim, when Ms. McAlister allegedly brought the error to the attention of David Kay, ARCP’s chief executive officer at the time, she reportedly said Mr. Kay allegedly told her and the chief financial officer, Brian Block, not to change the error.

Finally, the reports conclude, in July 2014, supposedly on a conference call regarding second-quarter earnings, Mr. Schorsch allegedly instructed Mr. Block to shift the numbers for the quarter in order to conceal the previous improper reporting.

Investor Rights Lawyers Investigating

The Peiffer Wolf Carr & Kane investor rights attorneys often represent investors who lose money as a result of investment misconduct. They are currently investigating Nicholas Schorsch, ARCP, RCAP, their sale of nontraded REITs, and the possibility of assisting any investors who believe they have lost money. 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.

Any Investors who believe they lost money as a result of investments with Nicholas Schorsch, ARCP, or RCAP may contact the investment rights 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.

For brokercheck report and additional info click here!

phil korosec (1250 Posts)

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.