Ex-CFO at REIT formerly controlled by Nicholas Schorsch indicted
Brian S. Block is being charged with overstating financial performance at American Realty Capital Properties Inc., now known as Vereit
Sep 8, 2016 @ 1:56 pm | By Bruce Kelly | Investment News
In parallel investigations, the Department of Justice and the Securities Exchange Commission on Thursday charged the former chief financial officer of American Realty Capital Properties Inc., a large traded REIT now known as Vereit Inc., with overstating the financial performance of the company by purposefully inflating a key metric used by analysts and investors to assess the company.
According to the SEC’s complaint, the company’s former CFO, Brian S. Block and then chief accounting officer Lisa McAlister devised a scheme to manipulate the calculation of the REIT’s adjusted funds from operations, or AFFO, a non-GAAP measure used when the company provided earnings guidance.
(More: How Nick Schorsch lost his mojo)
Mr. Block, 44, was arrested Thursday morning on conspiracy, securities fraud, and other charges at his home in Hatfield, Pa., according to a statement from the U.S. Attorney’s Office for the Southern District of New York.