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.

Multiple independent broker-dealer groups, including Cetera, have suspended sales of some Cole and AR Capital non-traded REITs; others making such a move are LPL Financial, Advisor Group, National Planning Holdings, Cambridge Investment Research and Securities America.

RCS Capital’s broker-dealer operations are currently led by Larry Roth, the former head of the Advisor Group. Roth initially served as CEO of Realty Capital Securities and then took the helm of Cetera Financial Group, which has been expanding through acquisitions of IBDs and now has some 9,700 affiliated reps. With Roth’s move to Cetera, Bill Dwyer, the former-president of LPL Financial’s Independent Advisor Services unit, came out of retirement to lead Realty Capital Securities.