Schorsch Accused of Directing ARCP Cover Up

Filed yesterday, in New York state court, Nick Schorsch has been accused of directing two former American Realty Capital Properties, Inc. executives to cover up quarterly financial results.

Lisa McAlister, ARCP’s former Chief Accounting Officer, who resigned when the accounting irregularity was first made public, filed the complaint as part of a defamation suit against the REIT, Schorsch, and former CEO, David Kay.

Both ARCP and RCAP, a Schorsch controlled entity, are both down significantly today in value, 4% and 13% respectively, at the time of this article.

Ms. McAlister, in the complaint, says she informed Schorsch and Kay of the issues, but was ignored. She also alleges that during a call with the pair in late July, Schorsch instructed Brian Block, ARCP’s former CFO, to adjust numbers in the second quarter results to cover up the errors found from the first quarter.

The complaint was filed earlier today.