{"id":6162,"date":"2017-06-20T18:58:27","date_gmt":"2017-06-20T23:58:27","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1621"},"modified":"2022-05-19T13:45:11","modified_gmt":"2022-05-19T18:45:11","slug":"securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/","title":{"rendered":"Securities Fraud: Ex-American Reality Capital Properties CFO is On Trial, Abu Dhabi Investor\u2019s Lawsuit Against Citibank is Revived, and Drivers File Class Action Case Against Juno"},"content":{"rendered":"<p><strong>Former REIT CFO\u2019s Criminal Trial is Under Way<\/strong><br \/>\nBrian 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\u2019s release of inaccurate financial statements during the first two quarters of 2014. As a result of the inaccuracies, ARCP overstated its adjusted funds from operations (AFFO) by about $12M for the end of that first quarter and by about $10.9M for the second quarter while understating its net losses.<\/p>\n<p>This week, Lisa McAlister, a key witness and ARCP\u2019s ex-chief accounting officer gave testimony. She suggested that Schorsch, the REIT\u2019s CEO and chairman at the time, instructed Block on how to distort the number in the books. Block was McAlister\u2019s boss at ARCP.<\/p>\n<p>McAlister said that she was in the room when Schorsch advised Block on how to hide the fraudulent accounting. McAlister said that Schorsch, who has not been charged with wrongdoing in the accounting mistakes, was instructing Block on how to compensate for a 3-cent shortfall in ARCP\u2019s targeted AFFO\/share by fudging a certain line item.<\/p>\n<p>McAlister has already pleaded guilty to <a href=\"https:\/\/www.stockbroker-fraud.com\">fraud charges<\/a> over ARCP\u2019s accounting irregularities.<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/#more-6162\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Former REIT CFO\u2019s 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\u2019s release of inaccurate financial statements during the first two quarters of 2014. As a result of the inaccuracies, [&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":[3804,3752,3759,3741],"tags":[2814,2815,2816],"class_list":["post-6162","post","type-post","status-publish","format-standard","hentry","category-class-action-lawsuits","category-financial-firms","category-reits","category-securities-fraud","tag-arcp","tag-cream-fund","tag-juno"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Securities Fraud: Ex-American Reality Capital Properties CFO is On Trial, Abu Dhabi Investor\u2019s Lawsuit Against Citibank is Revived, and Drivers File Class Action Case Against Juno &#8212; Investor Lawyers Blog &#8212; June 20, 2017<\/title>\n<meta name=\"description\" content=\"Former REIT CFO\u2019s Criminal Trial is Under Way Brian Block, the ex-American Realty Capital Properties CFO, is on trial over his alleged involvement in &#8212; June 20, 2017\" \/>\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\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Securities Fraud: Ex-American Reality Capital Properties CFO is On Trial, Abu Dhabi Investor\u2019s Lawsuit Against Citibank is Revived, and Drivers File Class Action Case Against Juno &#8212; Investor Lawyers Blog &#8212; June 20, 2017\" \/>\n<meta name=\"twitter:description\" content=\"Former REIT CFO\u2019s Criminal Trial is Under Way Brian Block, the ex-American Realty Capital Properties CFO, is on trial over his alleged involvement in &#8212; June 20, 2017\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Securities Fraud: Ex-American Reality Capital Properties CFO is On Trial, Abu Dhabi Investor\u2019s Lawsuit Against Citibank is Revived, and Drivers File Class Action Case Against Juno &#8212; Investor Lawyers Blog &#8212; June 20, 2017","description":"Former REIT CFO\u2019s Criminal Trial is Under Way Brian Block, the ex-American Realty Capital Properties CFO, is on trial over his alleged involvement in &#8212; June 20, 2017","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/","twitter_card":"summary_large_image","twitter_title":"Securities Fraud: Ex-American Reality Capital Properties CFO is On Trial, Abu Dhabi Investor\u2019s Lawsuit Against Citibank is Revived, and Drivers File Class Action Case Against Juno &#8212; Investor Lawyers Blog &#8212; June 20, 2017","twitter_description":"Former REIT CFO\u2019s Criminal Trial is Under Way Brian Block, the ex-American Realty Capital Properties CFO, is on trial over his alleged involvement in &#8212; June 20, 2017","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Securities Fraud: Ex-American Reality Capital Properties CFO is On Trial, Abu Dhabi Investor\u2019s Lawsuit Against Citibank is Revived, and Drivers File Class Action Case Against Juno","datePublished":"2017-06-20T23:58:27+00:00","dateModified":"2022-05-19T18:45:11+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/"},"wordCount":668,"keywords":["ARCP","CReAM Fund","Juno"],"articleSection":["Class Action Lawsuits","Financial Firms","REITs","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/","url":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/","name":"Securities Fraud: Ex-American Reality Capital Properties CFO is On Trial, Abu Dhabi Investor\u2019s Lawsuit Against Citibank is Revived, and Drivers File Class Action Case Against Juno &#8212; Investor Lawyers Blog &#8212; June 20, 2017","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2017-06-20T23:58:27+00:00","dateModified":"2022-05-19T18:45:11+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Former REIT CFO\u2019s Criminal Trial is Under Way Brian Block, the ex-American Realty Capital Properties CFO, is on trial over his alleged involvement in &#8212; June 20, 2017","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-ex-american-reality-capital-properties-cfo-trial-abu-dhabi-investors-lawsuit-citibank-revived-drivers-file-class-action-case-juno\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Securities Fraud: Ex-American Reality Capital Properties CFO is On Trial, Abu Dhabi Investor\u2019s Lawsuit Against Citibank is Revived, and Drivers File Class Action Case Against Juno"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards &amp; Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards &amp; Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1Bo","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/6162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=6162"}],"version-history":[{"count":6,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/6162\/revisions"}],"predecessor-version":[{"id":28247,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/6162\/revisions\/28247"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=6162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=6162"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=6162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}