RCS Capital Corp Division – Alleged Fraudulent Round-Up of Proxy Votes

investors rights attorneysFidelity and Schwab Have Halted Sales of RCS, a division of RCS Capital Corp after RCS Capital Allegedly Fraudulently Brought Together Proxy Votes to Help Real Estate deals sponsored by AR Capital

Fidelity Clearing and Charles Schwab & Co. Inc., have halted or will halt the sales of AR Capital products after it was revealed that RCS Capital allegedly fraudulently brought together proxy votes, according to media reports currently under review by attorneys Joe Peiffer and Alan Rosca.

AR Capital, a Nicholas Schorsch entity which markets non-traded real estate investment trusts and other alternative investment products to advisers through Realty Capital Securities, or RCS, has been charged with fraud, according to an administrative Complaint from Massachusetts Secretary of the Commonwealth William Galvin

The Peiffer Rosca Wolf securities lawyers are currently investigating Nicholas Schorsch’s AR Capital and its alleged fraudulent gathering of proxy votes, and are preparing to assist investors.

AR Capital No Longer Issuing New Investment Programs Starting on January 1, 2016

AR Capital, one of a few companies linked to both RCS Capital and American Realty Capital Properties (now VEREIT), claims it would not issue new investment programs next year nor pursue sales of existing products to new investors starting Jan. 1, according to a statement from a Fidelity Institutional spokeswoman currently under review by attorneys Joe Peiffer and Alan Rosca.

William Galvin also claims that he is seeking to revoke RCS’ broker-dealer registration in Massachusetts, impose a cease-and-desist order and levy a fine, the aforementioned Complaint notes.

William Galvin went on, the Complaint further notes, outlining the techniques he claims RCS used to achieve proxy vote victories, alleging that leaders of the firm told its agents to prioritize proxy solicitation calls and that if they did not, they could get fired.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of alleged investment schemes. They are currently investigating AR Capital and Nicholas Schorsch’s alleged fraudulent gathering of proxy votes. 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 AR Capital and Nicholas Schorsch’s alleged fraudulent gathering of proxy votes may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1144 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


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.