{"id":5889,"date":"2015-11-12T00:00:00","date_gmt":"2015-11-12T06:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/11\/massachusetts_regulatory_charg"},"modified":"2022-03-22T14:29:12","modified_gmt":"2022-03-22T19:29:12","slug":"massachusetts-regulatory-charg","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/massachusetts-regulatory-charg\/","title":{"rendered":"Massachusetts Regulatory Charges Realty Capital Securities With Fraud Related to Proxy Votes in Real Estate Deals"},"content":{"rendered":"<p>Massachusetts Secretary of the Commonwealth William Galvin is charging Realty Capital Securities with <a href=\"https:\/\/www.securities-fraud-attorneys.com\">fraud<\/a> involving the purported gathering of proxy votes to support AR Capital-sponsored real estate deals. Realty Capital Securities is part of RCS Capital Corp., also known as RCAP. Galvin wants to take away RCS\u2019s registration as a brokerage firm in the state.<\/p>\n<p>An RCS employee provided details about how colleagues pretended to be shareholders on proxy calls so they could vote for deals that were in management\u2019s best interests. There was purportedly no training over how to deal with proxy solicitation. Oversight is said to have involved RCS management regularly asking employees for updates about proxy votes and whether any progress had been made.<\/p>\n<p>The Massachusetts regulator said that Realty Capital Securities agents pretended to be shareholders and cast bogus votes for investment programs that were sponsored by Nicholas Schorsch\u2019s AR Capital. Schorsch is a principal shareholder in RSC Capital, which is the wholesaler broker-dealer of RCAP.<\/p>\n<p>For example, reports <em>InvestmentNews<\/em>, fake votes were cast in a September vote at a Business Development Corporation of America meeting. The vote was required so that Apollo Global Management could purchase real estate assets from Schorsch. Galvin said that BDCA paid RCS $375K for the solicitation of the proxy votes.<\/p>\n<p>Although the deal failed this week\u2014Apollo was supposed to buy a $378M majority stake in the company\u2014the global management firm was able to buy RCS\u2019s wholesaling business, including brokerage firms Strategic Capital and Realty Capital Securities, at a lower price of $6M.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/massachusetts-regulatory-charg\/#more-5889\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Massachusetts Secretary of the Commonwealth William Galvin is charging Realty Capital Securities with fraud involving the purported gathering of proxy votes to support AR Capital-sponsored real estate deals. Realty Capital Securities is part of RCS Capital Corp., also known as RCAP. Galvin wants to take away RCS\u2019s registration as a brokerage firm in the state. [&hellip;]<\/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":[3741],"tags":[],"class_list":["post-5889","post","type-post","status-publish","format-standard","hentry","category-securities-fraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Massachusetts Regulatory Charges Realty Capital Securities With Fraud Related to Proxy Votes in Real Estate Deals &#8212; Investor Lawyers Blog &#8212; November 12, 2015<\/title>\n<meta name=\"description\" content=\"Massachusetts Secretary of the Commonwealth William Galvin is charging Realty Capital Securities with fraud involving the purported gathering of proxy &#8212; November 12, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/massachusetts-regulatory-charg\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Massachusetts Regulatory Charges Realty Capital Securities With Fraud Related to Proxy Votes in Real Estate Deals &#8212; 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