ARCP shareholder calls for new board in wake of accounting scandal

ARCP shareholder calls for new board in wake of accounting scandal
Twin Securities CEO David Simon said in a letter on Tuesday that he has "deep reservations" about the existing board and their ties to Nicholas Schorsch.
APR 20, 2015
By  Bloomberg
American Realty Capital Properties Inc. shareholder Twin Securities Inc. said that all but one of the company's board members should refrain from seeking re-election this year in the wake of an accounting scandal that led to the departure of senior management. David Simon, chief executive officer of Twin Securities, said in a letter sent on Tuesday that he has “deep reservations” about the existing board members, given their “longstanding ties” to Nicholas Schorsch, the former ARCP chairman and chief executive officer who resigned last year. “It was on their watch that not only the accounting scandal, which led to the resignations of several company executives, but also several other events that were injurious to the interests of shareholders occurred,” according to Mr. Simon's letter. Mr. Simon said that all board members except Bruce Frank should refrain from seeking re-election at this year's annual meeting. He also asked that a shareholder representative be added to the board and that all new members have “significant real estate experience or an expertise that will be beneficial to the company.” Twin Securities owns about 1.8% of the American Realty's outstanding shares, according to data compiled by Bloomberg. Its request for a change to the board follows a similar demand made last month by activist investment firm Corvex Management, which has about 7.8% of the company's shares.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave