{"id":6168,"date":"2017-07-05T14:59:38","date_gmt":"2017-07-05T19:59:38","guid":{"rendered":"https:\/\/www.institutionalinvestorsecuritiesblog.com\/?p=1647"},"modified":"2022-05-19T09:44:10","modified_gmt":"2022-05-19T14:44:10","slug":"securities-cases-jury-renders-guilty-verdict-ex-arcp-cfo-brian-blocks-reit-fraud-trial-witnesses-testify-ex-hedge-fund-manager-martin-shkreli","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-jury-renders-guilty-verdict-ex-arcp-cfo-brian-blocks-reit-fraud-trial-witnesses-testify-ex-hedge-fund-manager-martin-shkreli\/","title":{"rendered":"Securities Cases: Jury Renders Guilty Verdict in Ex-ARCP CFO Brian Block\u2019s REIT Fraud Trial & Witnesses Testify Against Ex-Hedge Fund Manager Martin Shkreli"},"content":{"rendered":"

\t\t\t\tA federal jury has found ex-American Realty Capital Properties (ARCP) Inc. CEO Brian Block guilty of securities fraud, conspiracy to commit securities fraud and other offenses, and of submitting false certifications and filings to the US Securities and Exchange Commission. Block was convicted of overstating the adjusted funds from operations (AFFO) at the real estate investment trust. Following the rendering of the verdict in the REIT fraud case, a lawyer for Block said that his client plans to appeal. <\/p>\n

According to the US Department of Justice, an employee notified Block, as well as then-accounting chief Lisa McAllister about the funds overstatement before the first quarter results were publicly released in 2014. However, neither of them reported the error to auditors or to the REIT\u2019s board. Prosecutors contend that Block tried to cover up the incorrect figures in financial reports for the second quarter.<\/p>\n

The Wall Street Journal<\/em>, which reviewed ARCP\u2019s filings, reports that during 2014\u2019s first quarter, McAlister and Block overstated the AFFO by over $12M and by about $10.9M during the next quarter. McAlister pleaded guilty to securities fraud and other criminal charges last year.
\n Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A federal jury has found ex-American Realty Capital Properties (ARCP) Inc. CEO Brian Block guilty of securities fraud, conspiracy to commit securities fraud and other offenses, and of submitting false certifications and filings to the US Securities and Exchange Commission. Block was convicted of overstating the adjusted funds from operations (AFFO) at the real estate […]<\/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":[3748,3741],"tags":[2814,2820,2835],"class_list":["post-6168","post","type-post","status-publish","format-standard","hentry","category-hedge-funds","category-securities-fraud","tag-arcp","tag-martin-shkreli","tag-vereit"],"yoast_head":"\nSecurities Cases: Jury Renders Guilty Verdict in Ex-ARCP CFO Brian Block\u2019s REIT Fraud Trial & Witnesses Testify Against Ex-Hedge Fund Manager Martin Shkreli — Investor Lawyers Blog — July 5, 2017<\/title>\n<meta name=\"description\" content=\"A federal jury has found ex-American Realty Capital Properties (ARCP) Inc. 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