Nicholas Schorsch, the executive chairman of RSC Capital Corp.’s (RCAP) board of directors, has just announced that the brokerage firm is going to buy independent broker-dealer J.P. Turner for $27 million. The news comes one day after RSC announced it was buying brokerage firm Cetera Financial Group for $1.15 billion from Lightyear Capital LLC.
To acquire J.P. Turner, RSC Capital will pay 70% of the buying price in cash and the remainder in stock. This will add 325 advisers to the RSC’s roster.
RSC’s CEO is William Kahane. He co-founded American Realty Capital, a non-traded real-estate investment trust sponsor, with Schorsch, of which the latter is the head. Schorsch entered the independent brokerage scene last year when he acquired Legend Group, First Allied Securities, Investors Capital Holding, and Summit Brokerage Services.
These latest acquisitions now make RSC Capital the second biggest independent brokerage network in the US after LPL Financial (LPLA). It was just last month that the Financial Industry Regulatory Authority told J.P. Turner to pay $707,000 in restitution to more than 80 customers over leveraged and inverse exchange-traded funds. The regulator said that the brokerage firm did not establish and maintain a supervisory system that could reasonably oversee these types of ETFs. It also said that J.P. Turner failed to properly train its representatives.
Broker Fraud
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RCS Capital Corporation Announces Agreement to Acquire J.P. Turner, PRNewswire, January 17, 2014
Schorsch’s RCS Capital to Buy Second Broker-Dealer in Two Days, BusinessWeek, January 17, 2014
RCS Capital to Acquire Cetera Financial for $1.15 Billion, WSJ, January 16, 2014
More Blog Posts:
FINRA Orders J.P. Turner to Pay $707,559 in Exchange-Traded Fund Restitution to 84 Clients, Stockbroker Fraud Blog, December 10, 2013
Nontraded REIT News: Securities America Stops Selling American Realty Capital Trust V and Advisor Group Ends Selling Deal with Cole Holding, Stockbroker Fraud Blog, July 18, 2013
SEC Charges Filed Against Stifel, Nicolaus & Co. and Former Sr. VP David Noack Over CDO Sales to Wisconsin School Districts, Institutional Investor Securities Blog, August 11, 2013