RCS Capital Corp Division – Alleged Fraudulent Round-Up of Proxy Votes
Fidelity 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 Jason Kane.
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 Wolf Carr & Kane 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 Jason Kane.
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 Wolf Carr & Kane 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 Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free no-obligation evaluation of their recovery options, at (585) 310-5140.