Schorsch accused of manipulating ARCP books: Report

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Schorsch accused of manipulating ARCP books: Report

American Realty Capital Properties Inc.'s former chief accounting officer alleges the ex-chairman ordered numbers to be changed

Dec 18, 2014 @ 2:00 pm

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American Realty Capital Properties Inc.'s former chief accounting officer, Lisa McAlister, has filed a suit in New York state court accusing Nicholas Schorsch, former chairman of the company, of ordering two executives to alter quarterly financial results, according to a report in the Wall Street Journal Thursday.

The company, which trades as ARCP, was down more than 5% Thursday afternoon in New York. Shares of RCS Capital Corp., a related company of which Mr. Schorsch is still chairman, were down more than 15%.

Andy Merrill, a spokesman for ARCP, could not immediately be reached for comment. Andrew Backman, a spokesman for RCS Capital Corp., also was unavailable.

(More: ARCP delays third-quarter earnings report)

The news comes just over a month and a half after ARCP's chief financial officer, Brian Block, resigned when the company revealed a $23 million accounting error from the first half of the year that was intentionally not corrected. Ms. McAlister also resigned at that time.

Mr. Schorsch stepped down as chairman of ARCP on Monday.

The complaint, which is part of a defamation suit against ARCP, is asking for $50 million, according to the Journal.

(More: Accounting fiasco highlights tangled web behind Nicholas Schorsch's empire)

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