National Planning Holding Temporarily Stops Selling American Reality Capital Properties’ Nontraded REIT sales After Disclosure of $23M Accounting Error

National Planning Holding, a broker-dealer network, says that it has temporarily stopped offering American Realty Capital Properties Inc.’s (ARCP) non-traded real estate investment trusts for sale. The move comes after the real estate investment trust, run by Nicholas Schorsch, disclosed a $23 million accounting mistake. American Realty Capital is the top sponsor of nontraded REITs. Schorsch is its chairman.

The National Planning Holding suspension impacts just one Schorsch product, the Phillips Edison – ARC Grocery Center REIT II. This is a new REIT with about $207 million in total assets.

The four brokerage firms who are temporarily suspending sponsorship and distribution of the nontraded REITs by American Realty Capital Properties and its affiliates are SII Investments Inc., National Planning Corp, Investment Centers of America Inc., and INVEST Financial Corp. They are asking for Realty Capital Securities, the wholesaling broker-dealer for ARC products, to return unprocessed sales orders from INVEST advisers. They don’t want the brokerage firm to process related new business.

但是，根据Invest首席执行官史蒂夫·道登（Steve Dowden）的备忘录，经纪人也不允许在ARCP和RSC Capital Corp，Capital Healthcare Trust Inc.以及与Schorsch相关的另一家公司中征集交易。证券的未经请求交易仍可能会进行，但需要标记。bob200体育此外，NPH经纪公司希望美国现实资本停止对不再出售的非交易房地产投资信托公司进行股息再投资。

本周早些时候，美国房地产资本物业（American Realty Capital Properties）透露，其财务报表不准确，错误的误差为2300万美元。该公司表示，审计委员会认为，当第一次发现错误时，它是故意没有纠正的，并造成了其他财务报表和错误来掩盖最初的错误。因此，该公司指出，在低估了净损失的同时，一定程度的流量夸大了。

美国房地产资本物业（American Realty Capital Properties）表示，在今年3月结束的三个月中，将从运营中的调整后的资金减少了约1200万美元，在接下来的三个月中为1,090万美元。根据ARCP的说法，一旦审计委员会发现了这一错误，该错误就立即解决了。

Following this latest news, American Realty Capital Property’s chief financial officer, Michael Brian Block resigned. A new chief accounting officer, Gavin Brandon, was also named. He replaces Lisa McAlister.

Since the error disclosure was made public, American Realty Capital Properties’ stock has plunged 28%. Meantime, the U.S. Securities and Exchange Commission said it intends to start an inquiry into the matter. Schorsch, however, has downplayed the mistake for its potential to have any spillover effect. He said the issue would not affect his unlisted real estate investment trusts.

然而，根据Wall Street Journal, brokers are reporting a rise in the number of investors wanting to sell their shares in some of the unlisted REITs that are sponsored by companies that have an affiliation to Schorsch. Also, LPL Financial Holdings Inc. (LPLA), which is the biggest network of independent financial advisers in the country, has said that it is placing certain unlisted REITs on its “watch list.”

Our nontraded REIT fraud lawyers represent investors seeking to recoup their losses.

Schorsch’s American Realty Capital discloses serious accounting errors; CFO out, InvestmentNews, October 29, 2014

投资者重新考虑与美国房地产的REIT, The Wall Street Journal, October 31, 2014

投资者重新考虑与美国房地产的REIT, The Wall Street Journal, October 31, 2014

更多的博客文章:
SEC批准涉及REIT价格和仲裁欺诈干预的法规，股票经纪欺诈博客，2014年10月18日

California Regulators Probe Inland American Real Estate Trust REIT, Stockbroker Fraud Blog, May 15, 2014

Non-Traded REITs, Structured Products, and Private Placements Remain Under Regulator Scrutiny, Institutional Investor Securities Blog, July 7, 2014