Two more broker dealers have suspended the sales of REITs associated with Nicholas Schorsch, the executive chairman of American Realty Capital. In addition to Securities America, LPL Financial Holdings and AIG Advisor Group have also suspended the sale of select REITs.
According to investment News, AIG Advisor Group has suspended the sale of American Realty Capital New York City REIT and Phillips Edison-ARC Grocery Center REIT. LPL Financial said that they will no longer sell products by American Realty Capital Properties and RCS Capital Corporation.
The SEC is currently investigating an alleged accounting error made by American Realty Capital that significantly understated the REITs quarterly losses. According to the Wall Street Journal, the error resulted in the resignation of the company’s chief financial officer, Brian Block, and chief accounting officer, Lisa McAlister.
Broker dealers are required to perform due diligence on all investment offerings. The accounting error, along with the resignation of the chief financial officer and chief accounting officer, raise questions regarding the adequacy of due diligence performed by broker dealers on American Realty Capital investment products.
If you’ve suffered losses on an American Realty Capital REIT and would like to discuss your litigation options, please call The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.