Massachusetts regulators are investigating Realty Capital Securities’ non-traded REIT sales, a spokesperson said in early November. Realty Capital Securities, of which Nicholas Schorsch is executive chairman, is the wholesaling arm of RCS Capital or RCAP, which also includes several broker-dealers in its Cetera Financial unit.
In late October, American Realty Capital Properties announced accounting errors that totaled nearly $23 million; Schorsch is ARCP’s chairman. This news prompted authorities to open up investigations of ARCP and for RCS Capital to call off a deal to buy some of Cole Capital’s operations from ARCP.