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.
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