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.

0
Comments

What do you think?

View comments

Most watched

Events

MassMutual's LaPianna: Creating better conversations with your clients

What's the secret to building better client relationships? MassMutual's Paul LaPianna says it all begins with great conversations.

INTV

How advisers can be a gamechanger for women investors

Why women defer to men when it comes to finances and how advisers can combat this phenomenon and make a difference for female investors, according to Heather Ettinger, founder and CEO Luma Wealth Advisors.

Latest news & opinion

Finra reaches settlements with 56 firms for overcharging customers on mutual funds

Regulator obtained $89 million in restitution as a result of the crackdown.

Schorsch, AR Capital to pay $60 million to settle SEC charges

The former REIT czar and his firm wrongfully obtained millions linked to REIT mergers.

CFP Board postpones enforcement of its revised fiduciary standard

Board's new Code of Ethics and Standards to be enforced next June, in line with the SEC's Reg BI

Charles Schwab reportedly in talks to buy USAA brokerage, wealth management business

The deal would net Schwab roughly $100 billion in new assets.

X

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 investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

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

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print