Brian Block, former CFO of now defunct American Realty Capital Characteristic (ARCP), was found guilty today in a New York federal court of illegally doctoring the revenues of the once high-flying REIT.
After three weeks of financial statement, jurors took less than a morning to render a verdict.
Prosecutors in their closing arguments on Thursday stated the proof boiled to that Block boosted an essential profits metric by increasing one number and decreasing the number it’s divided by, inning accordance with reporting from Law60.
Block was founded guilty of conspiracy to devote securities scams and other offenses, securities scams, and two each for making incorrect filings to the Securities and Exchange Commission and sending incorrect certifications to the SEC.
In October 2014, ARCP, a publicly traded property financial investment trust, revealed that its audit committee had actually concluded that formerly provided financial statements and other financial info included in specific public filings should not be relied upon. The REIT was sponsored by American Real estate Capital, sponsor of various non-traded REITS too.
At that time ARCP also revealed that Block, and its primary accounting officer had actually left the business.
The following December ARCP revealed that its chairman, Nicholas Schorsch, president, David Kay, and president and chief running officer had each stepped down.
The havoc his actions wreaked is still being felt throughout the non-traded REIT industry.