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