According to a recent InvestmentNews article, Brian S. Block, former Chief Financial Officer at American Realty Capital Properties Inc., now known as Vereit, was charged with overstating financial performances at the company. The Department of Justice and the Securities Exchange Commission (SEC) also charged him with overstating the financial performance of the company by purposefully inflating a key metric used by analysts and investors to assess the company. Allegedly, Block and another chief accounting officer, Lisa McAlister devised the scam to manipulate the calculation of the real estate investment trust (REIT’s) adjusted funds from operations. Mr. Block was arrested Thursday morning on conspiracy, securities fraud, and other charges. Ms. McAlister pled guilty to one count of conspiracy to commit securities fraud, one count of securities fraud, and one count of making false statements.
REITs tend to be very risky and illiquid investments that are not suitable for all investors. If you were recommended and sold the Vereit non-traded REIT, and lost funds, you may be able to recover them in the Financial Industry Regulatory Authority (FINRA) by suing your brokerage firm on a contingency fee basis. The call to us to discuss your options with an attorney is free, so please call today. 312-332-4200.