{"id":1753,"date":"2015-12-02T19:56:04","date_gmt":"2015-12-02T19:56:04","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2015\/12\/rcap_settles_proxy_fraud_alleg"},"modified":"2022-03-22T14:29:13","modified_gmt":"2022-03-22T19:29:13","slug":"rcap-settles-proxy-fraud-alleg","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/rcap-settles-proxy-fraud-alleg\/","title":{"rendered":"RCAP Settles Proxy Fraud Allegations With Massachusetts for $3M, Shuts Down Wholesaling REIT Brokerage Division"},"content":{"rendered":"

\t\t\t\tRCS Capital Corp. is closing its wholesaling brokerage unit following allegations of fraud and a drop in its sales of nontraded real estate investment trusts. InvestmentNews<\/em> reports that according to a source, about 150 employees at Realty Capital Securities are expected to be laid off, as are another 50 employees who work elsewhere in the company.<\/p>\n

The company also announced that it has settled the proxy fraud allegations made against it by Massachusetts’ securities division and it will pay $3 million. The state’s Secretary of the Commonwealth William Galvin accused the broker-dealer of fraudulently collecting proxy votes to back real estate deals that were sponsored by AR Capital, which is owned by former real estate magnate Nicholas Schorsch. He still is a principal shareholder of RCAP stock. It was Realty Capital Securities that raised hundreds of millions of dollars in equity each month for retail investors who bought Schorsch REITs just a few years ago.
\n Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

RCS Capital Corp. is closing its wholesaling brokerage unit following allegations of fraud and a drop in its sales of nontraded real estate investment trusts. InvestmentNews reports that according to a source, about 150 employees at Realty Capital Securities are expected to be laid off, as are another 50 employees who work elsewhere in the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3759],"tags":[],"class_list":["post-1753","post","type-post","status-publish","format-standard","hentry","category-reits"],"yoast_head":"\nRCAP Settles Proxy Fraud Allegations With Massachusetts for $3M, Shuts Down Wholesaling REIT Brokerage Division — Investor Lawyers Blog — December 2, 2015<\/title>\n<meta name=\"description\" content=\"RCS Capital Corp. is closing its wholesaling brokerage unit following allegations of fraud and a drop in its sales of nontraded real estate investment — December 2, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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