What You Need to Know
- Nicholas Schorsch headed a financial empire that included Cetera.
- SPACs are one of the hottest markets on Wall Street.
- Schorsch's G&P Acquisition Corp. intends to invest in leisure, craft brewing and distilling, automotive and distribution companies.
Nicholas Schorsch, the former head of a one-time financial empire that included Cetera Financial Group and several nontraded REIT companies, who was accused of fraud by the Securities and Exchange Commission for his part in an excessive fee scheme involving REIT mergers, is back in the financial securities business.
Nearly two after Schorsch and his partner, Brian Block, the chief financial officer of American Realty Capital Properties Inc., settled with the SEC for $60 million (Block was also sentenced to 18 months in prison), Schorsch has returned to financial services as the chairman of a special purpose acquisition company (SPAC) that has registered a $200 million securities offering with the SEC.
The SPAC, G&P Acquisition Corp., intends to sell 20 million units worth $10 each to invest in leisure, craft brewing and distilling, automotive and distribution companies. Each unit consists of one share of common stock and one-half of a warrant, exercisable at $11.50. At the proposed deal size, G&P Acquisition would command a market value of $250 million.