The Realty Capital Securities "accounting error" that saw Nicholas Schorsch's company reveal an allegedly deliberate $23 million inaccuracy in reporting—an error that represents 11% of the affected REIT's $207 million total value—took another turn as Massachusetts chief regulator William Galvin launched an investigation into Realty Capital Securities over the multi-million dollar fiasco, joining both the SEC and FBI, which both have launched their own investigations into American Realty Capital Properties Inc.
Additionally, while Schorsch himself continues serving as CEO and chairman of American Realty Capital, that branch tried distancing itself from the American Realty Capital Properties REIT, with several American Realty Capital nontraded REITs updating filings with the SEC to stress they are separate from American Realty Capital Properties.
Schorsch himself remains chairman of American Realty Capital Properties and, until October 1, served as its Chief Executive Officer.
Meanwhile, regulator Galvin's investigation concerns what information Realty Capital Securities provided to investors who bought the affected REITs, as well as what representatives told investors about accounting at the REITs.
If your investment activity has concerned broker-dealer Realty Capital Securities, holding company RCS Capital Corp, American Realty Capital Properties or its associated nontraded REITs, and faulty, misleading or erroneous information concerning the REITs has resulted in financial damage to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.
News: Massachusetts regulator Galvin investigation Schorsch B-D (InvestmentNews)