SEC closes book on Brian Block, former Schorsch associate, with $160,000 fine

The former CFO at American Realty Capital Properties Inc. was previously sentenced to 18 months in prison for securities fraud

Feb 14, 2018 @ 5:02 pm

By Greg Iacurci

Brian Block, a former associate of one-time real estate czar Nicholas Schorsch, has agreed to a $160,000 civil penalty and a permanent ban from serving as a director and officer for violating securities rules, the Securities and Exchange Commission said Wednesday.

In November, a federal judge sentenced Mr. Block, formerly the chief financial officer of American Realty Capital Properties Inc., a publicly traded real estate investment trust founded by Mr. Schorsch, to 18 months of prison and a $100,000 fine after he was convicted of six counts of fraud.

(More: How Nick Schorsch lost his mojo)

The U.S. Attorney's Office for the Southern District of New York charged Mr. Block in September 2016 with conspiracy, securities fraud and other charges stemming from falsified accounting at the REIT, known by its former ticker symbol ARCP.

The federal government claimed Mr. Block inflated an important REIT accounting metric — adjusted funds from operation, or AFFO — in the company's financial statements for the second quarter of 2014.

Mr. Block also consented on Wednesday to an order suspending him from appearing or practicing before the SEC as an accountant.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


Top questions surrounding future of DOL fiduciary rule

Reporter Greg Iacurci and managing editor Christina Nelson discuss the biggest uncertainties springing from the Fifth Circuit Court of Appeals' decision to vacate the regulation.

Latest news & opinion

What the next market downturn means for small RIAs

Firms that have enjoyed AUM growth because of the runup in stocks may find it hard to adjust to declining revenues if the market suffers a major correction.

DOL fiduciary rule likely to live on despite appeals court loss

Future developments will hinge on whether the Labor Department continues the fight to remake the regulation its own way.

DOL fiduciary rule: Industry reacts to Fifth Circuit ruling

Groups on both sides of the fiduciary debate had plenty to say.

Fifth Circuit Court of Appeals vacates DOL fiduciary rule

In split decision, judges say agency exceeded authority.

UBS, after dumping the broker protocol, continues to see brokers come and go

The wirehouse has seen 14 individuals or teams leave and five join for a net loss of $2.4 billion in AUM


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print