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Ex-CFO at REIT formerly controlled by Nicholas Schorsch indicted

September 9, 2016

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.

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Gordon Dunne
September 30, 2019

“Always, but especially in this day of lawsuits and ever increasing regulations, the responsibility for a financial advisor t do their own due diligence on products they sell falls squarely on themselves. No one is going to take greater interest in protecting their practice than they are. We use the Blue Vault Partners Nontraded REIT Review to keep us informed of the performance of every single nontraded REIT. Finally, complete transparency is available for advisors using nontraded REITs. Every advisor using REITs in their practice should make the small annual investment of subscribing to Blue Vault’s reporting services.”