Fidelity, Pershin and Schwab have stopped investing in Nicholas Schorsch's American Realty Capital Properties, Inc. nontraded REITs, joining the National Planning Holdings Inc. broker-dealer network and Cetera Financial Group in the latest big-name investment firms and networks to suspend involvement in the fiscally troubled firm.
After an audit committee investigation discovered that American Realty Capital made an allegedly deliberate multi-million dollar accounting error—$23 million to be precise—investors fell like dominos, leaving American Realty Capital, whose total assets now stand at just $207 million. InvestmentNews estimates that, as of the Fidelity/Pershin/Schwab decision to defect, at least 38,800 registered representatives and investment advisers no longer place funds into the REIT, which represents about one-quarter of total independent contractor representatives and advisers.
American Realty Capital Properties' stock has lost nearly 30% of its value since news of the $23 million error broke.
Schorsch is chairman and chief executive of American Realty Capital and the publicly traded American Realty Capital Properties Inc. REIT, which owns Cole Capital Partners and Cole Capital Advisors, Inc.
If you have invested in American Realty Capital Properties, Inc.'s REITs or other Nick Schorsch-affiliate companies that are affected by this multi-million dollar accounting error, and this is proving harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.
News: Fidelity, Pershing, Schwab join suspension of Schorsch REITs (InvestmentNews)