Investor Lawyers Blog

Judge Approves $31M Class Action Securities Settlement Over RCS Capital Shares

Published on: October 5, 2017 | by Shepherd Smith Edwards & Kantas, LLP

In New York, a federal judge has approved a $31M shareholder fraud settlement reached in the class action securities case filed by investors that purchased stock in former broker-dealer RCS Capital. The plaintiffs, including lead plaintiffs the City of Providence, Rhode Island and the Oklahoma Police Pension Fund, had sued the brokerage firm, its head […]

Securities Fraud: Ex-American Reality Capital Properties CFO is On Trial, Abu Dhabi Investor’s Lawsuit Against Citibank is Revived, and Drivers File Class Action Case Against Juno

Published on: June 20, 2017 | by Shepherd Smith Edwards & Kantas, LLP

Former REIT CFO’s Criminal Trial is Under Way Brian Block, the ex-American Realty Capital Properties CFO, is on trial over his alleged involvement in accounting errors that led to the former Nicholas Schorsch-controlled real estate investment trust’s release of inaccurate financial statements during the first two quarters of 2014. As a result of the inaccuracies, […]

Killeen Man Accused of Texas Securities Fraud Targeting Military

Published on: April 23, 2015 | by Shepherd Smith Edwards & Kantas, LLP

The U.S. Securities and Exchange Commission is accusing Leroy Brown Jr. of Texas securities fraud. Brown, a U.S. army veteran, allegedly solicited ex- and current members of the military and others to invest with him and his firm LB Stocks and Trades Advice. Among his purported wrongdoings are presenting his firm as SEC- and Financial […]

Trader Blamed in 2010 Flash Crash is Arrested in London

Published on: April 22, 2015 | by Shepherd Smith Edwards & Kantas, LLP

Almost five years after the 20-minute Flash Crash when the Dow Jones Industrial Average plunged nearly 600 points and then quickly rebounded, the U.S. Department of Justice has arrested trader Navinder Singh Sarao. He is accused of allegedly playing a major part in the brief turmoil because of his involvement in a number of market […]

Boston Investment Adviser Must Pay Two Investors A $48M Arbitration Award

Published on: April 21, 2015 | by Shepherd Smith Edwards & Kantas, LLP

Investment Advisory firm Family Endowment Partners and its managing partner Lee Weiss have been ordered to pay a $48 million securities arbitration award to clients for private investments they made in Biosyntec Polska, a company that owned a tobacco company in Poland and purportedly patents a cigarette filter that was supposed to dramatically transform the […]

Another Institutional Investor Fraud Lawsuit Accuses American Realty Capital Properties Of Violating Securities Laws

Published on: January 26, 2015 | by Shepherd Smith Edwards & Kantas, LLP

The New York City Retirement Systems and TIAA-CREF have joined other institutional investors in suing . They contend that the real estate investment trust violated federal securities laws when it allegedly made misleading and false statements that misrepresented the company’s business, as well as took part in a scam to fool the market and artificially […]

Moody’s Reduces American Realty Capital Properties Credit Rating to Junk Status, REIT’s Founder Nicholas Schorsch Steps Down

Published on: December 16, 2014 | by Shepherd Smith Edwards & Kantas, LLP

American Realty Capital Properties’ (ARCP) credit rating was just downgraded to junk status by Moody’s Investors Service (MCO). The credit rater is now rating the real estate investment trust with a Ba1, which is just under investment grade. Moody’s has also given ARCP a negative outlook. The downgrade comes following this week’s management shakeup at […]

Fidelity, Schwab, and Pershing Suspend Trading of Schorsch Nontraded Real Estate Investment Trusts

Published on: November 13, 2014 | by Shepherd Smith Edwards & Kantas, LLP

Three more firms have decided to suspend trades of nontraded real estate investment trusts managed and backed by companies under Nicholas Schorsch’s control. The suspension comes following news of a $23 million accounting error involving American Realty Capital Properties Inc. (ARCP) which is Schorsch’s publicly treated REIT. ARCP owns Cole Capital Advisors Inc. and Cole […]

AIG Advisor Group, Securities America, LPL Financial, Cambridge, And Even Schorsch’s Broker-Dealer Stops Selling His REITs

Published on: November 7, 2014 | by Shepherd Smith Edwards & Kantas, LLP

More broker-dealers are suspending their sale of Nicholas Schorsch-affiliated nontraded real estate investment trusts. The suspensions are coming in the wake of the announcement of a $23 million accounting error involving American Reality Capital Properties Inc., which is the traded REIT under Schorsch’s control. Even after the error was found it was purportedly purposely left […]

National Planning Holding Temporarily Stops Selling American Reality Capital Properties’ Nontraded REIT sales After Disclosure of $23M Accounting Error

Published on: October 31, 2014 | by Shepherd Smith Edwards & Kantas, LLP

National Planning Holding, a broker-dealer network, says that it has temporarily stopped offering American Realty Capital Properties Inc.’s (ARCP) non-traded real estate investment trusts for sale. The move comes after the real estate investment trust, run by Nicholas Schorsch, disclosed a $23 million accounting mistake. American Realty Capital is the top sponsor of nontraded REITs. […]