The board of directors of Business Development Corporation of America, a non-traded business development company sponsored by AR Capital, appointed Michael Weil to serve as a director.
Weil replaces William Kahane, a founding partner of AR Capital, who “did not resign due to a disagreement with the company,” according to a filing with the Securities and Exchange Commission. Weil is also a founding partner of AR Capital.
The RCAP resignations followed charges by the state of Massachusetts that members of the firm’s wholesale distribution business, Realty Capital Securities, had cast fraudulent investor proxy votes to support AR Capital-supported initiatives. RCS agreed to pay a $3 million fine and to shut down its business nationwide.