SEC Charges Archives - The Industry Spread

Former REIT Manager and Executives to Settle SEC Charges for More Than $60 Million

July 21, 2019

The Securities and Exchange Commission, SEC Charges today charged AR Capital LLC, its founder Nicholas S. Schorsch, and its former CFO Brian Block with wrongfully obtaining millions of dollars in connection with two separate mergers between real estate investment trusts (REITs) that were sponsored and externally managed by AR Capital. The defendants agreed to settle the matter by, among other things, cumulatively agreeing to over $60 million in disgorgement, prejudgment interest and civil penalties.