Category Archives: RCS Capital Corp.

Investors Capital Corp.-How to Recover Damages For Investment Losses

November 2016- Lynnfield, MA

Investors Capital Corp.  will be closing down and transferring some of its brokers and current clients to another firm within the Cetera network of broker dealers, according to a spokesman for Cetera Financial Group.

RCS Capital, Cetera’s parent has been in bankruptcy and this consolidation is part of their restructuring. The company has announced that  it will also close down VSR Financial Services , another small independent broker dealer as well. It is expected that most of the current brokers of VSR and Investors Capital will be asked to join Summit Brokerage Services, a related entity which is headquartered in Boca Raton, FL.

Investor’s Capital Corp. Recent Regulatory Issues

October 2016-According to FINRA records, Investors Capital Corp agreed to pay $1.1 million in fines and restitution to resolve FINRA allegations that sales procedures for the sale of unit investment trusts (UITs) were inadequate. A UIT is a mix between an actively managed fund and a fixed portfolio of income producing securities.  UITs are generally intended as long term investments.

According to the FINRA sanction several Investors Capital brokers traded UITs on a short term basis causing losses to customers.

August 2016-Pennsylvania securities regulators fined Investors Capital Corp. $100,000 for failures in supervising its brokers.

Recovery of Investment Losses From Investors Capital Corp.

If you have suffered losses in an account at Investors Capital Corp. you may be able to recover damages through FINRA arbitration. Time is of the essence, so if you have a claim, you would be wise to pursue it immediately. Call to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Losses on RCS Capital (RCAP) ? Recovery Options for Investors.

December 3, 2015

RCS Capital Corp. (RCAP) was trading at over $38 in April 2014. At the time of this writing it is trading for 43 cents. Investors who have suffered losses on RCAP may be able to recover damages from the brokerage firm that recommended the investment if it can be shown that the recommendation was not suitable.

How did the value of this once high flying company drop so dramatically?

Last month , RCS Capital, founded by real estate mogul Nicholas Schorsch, settled charges with Massachusetts securities regulators who had charged the company with fraudulently obtaining proxy votes to support real estate deals sponsored by AR Capital, a related company. RCAP agreed to pay $3 million to settle the charges.

This week RCS Capital announced that they would shut down its wholesale brokerage division Realty Capital Securities due to declining sales of nontraded real estate investment trusts (REITs). This move will result in the layoff of around 200 people, according to recent press.

RCS Capital was on an acquisition binge over the past couple of years acquiring a string of independent broker dealers. At the time Schorsch was criticized for overpaying for these small brokerage firms and after third quarter reporting results, it appears the criticism was warranted, based upon the massive write-offs taken:

  • Cetera Financial Holdings-purchased in 2014 for $1.15 billion, written down by $134 million.
  • Summit Financial Services Group= purchased in 2014 for $57.2 million, written down by nearly $10 million.
  • First Allied Holdings purchased in 2014 for $177 million, written down by nearly $45 million.
  • Investors Capital Holdings purchased in 2014 for $52.5 million, written down by $26.7 million.
  • VSR Group, purchased in 2015 for $66.7 million, written down by $28 million.
  • Girard Securities purchased in 2015 for $27.8 million, written down by $13.2 million.
  • J.P. Turner purchased in 2014 for $32.7 million was written down by over $13 million earlier this year.

RCAP took additional write-offs on other business units totaling tens of millions of dollars as well.

If you suffered losses on RCAP that you purchased based on the recommendation of your broker you may be able to recover damages from the broker dealer where the broker worked at the time. Call to discuss your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Girard Securities Acquisition Closed by RCS Capital Group

March 12, 2015

RCS Capital Corporation announced that it closed the acquisition of Girard Securities.

Girard Securities has over  $10  billion of assets and 250 financial advisors. They become a part of the  Cetera Financial Group which has $236 billion in assets and over 9,600 financial advisors.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

RCS Capital Closes Deal on Acquisition of VSR Financial

March 5, 2015

RCS Capital Corporation announced that it closed the acquisition of VSR Group, Inc. and VSR Financial Services, Inc., which had been announced months ago.

VSR Financial is based in Overland Park, Kansas and adds $12.3 billion of assets and 264 financial advisors to the Cetera Financial Group platform.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Regulators Launch Investigation of Realty Capital Securities

November 7, 2014–Massachusetts securities regulators launched an investigation of Realty Capital Securities, the wholesaling division of RCS Capital Corp,  a broker-dealer holding company led by Nicholas Schorsch it’s chairman.

Earlier this week American Realty Capital Properties, Inc. , which is  a part of the Schorsch real estate investment trust (REIT) empire, announced a $23 million accounting error that, according to news reports, was intentionally uncorrected.

News reports suggest that the SEC and the FBI have begun investigations of American Realty Capital Properties.

The Massachusetts regulators, led by William Galvin, are reportedly looking at the information provided to investors purchasing REITs , especially accounting information.

According to the recent quarterly report (10Q for Q1), a copy of which can be found here on the company website, Inland American REIT is currently under investigation by the Securities & Exchange Commission (SEC).

According to the report, the SEC investigation is to determine if there have been violations of federal securities laws related to:

  • business manager fees
  • property management fees
  • transactions with affiliates
  • timing and amount of distributions to investors
  • determination of property impairments

The report states that at the current time the company has not been accused of any wrongdoing and that they are cooperating fully in the investigation.

 

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

RCS Capital Corp. To Buy Girard Securities, Inc.

RCS Capital Corp. , announced its intention to buy Girard Securities, Inc. , broker dealer based in San Diego that has over $10 billion in assets under management and 250 financial advisers.

Last week RCS announced the purchase of VSR Financial, and earlier in the year acquired Cetera Financial Group, Investors Capital Holdings, First Allied Holdings, Summit Financial and J.P. Turner. 

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870