brokerwatch

Nicholas Schorsch’s American Finance Trust, Inc. (AFIN) Real Estate Investment Trust (REIT) proved to be a stark reminder of how disastrous non-traded REITs can be for investors. Eerily reminiscent of recent $90 Million dollar settlement related to Schorsch’s Vereit Inc., we believe that company officials of AFIN have exaggerated and published overvalued share prices prior to commencing trading on the Nasdaq.

Thus, the securities law firm of Peiffer Wolf has begun another investigation into Schorsch, a new investigation into Schorsch’s AFIN REIT, as well as individual investigations into any and all brokers and advisors who recommended AFIN REITs to investors. If you invested in AFIN, Contact Peiffer Wolf for a FREE CONSULTATION by calling 585-310-5140 of by filling out a Contact Form on this website.

AFIN, a publicly registered non-traded real estate investment trust sponsored by AR Global, has “eroded approximately $1 billion of” the company’s equity value, according to a report last Thursday by Robert A. Stanger & Co. Inc., an investment bank. According to Stanger, the Nasdaq listing of AFIN has turned into a “belly flop.” Mr. Schorsch is not an officer at AFIN, but he is the majority owner of AR Global. According to InvestmentNews,

As reported by InvestmentNews, “Despite the pain felt by investors, AFIN’s management inexplicably sounded pleased with the REIT’s results. AFIN shares closed at $15 after its first day of trading, $10 less than what brokers sold it for.”

Bruce Kelly of InvestmentNews stated,

Did You Invest in AFIN? AFIN REIT Disaster

If you believe you were a victim of investment fraud or broker misconduct, it is imperative to take action. Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors.

Contact Peiffer Wolf today by filling out a Contact Form on our website or by calling 585-310-5140 to schedule your FREE Case Evaluation.

VEREIT | American Realty Capital Partners | Nicholas Schorsch

In June, VEREIT, the successor to the former real estate investment company American Realty Capital Partners Inc. set up by Nicholas Schorsch, paid Vanguard Group $90 million to settle a 2016 lawsuit. As reported by Joseph DiStefano in a philly.com article, “Vanguard sued after Schorsch admitted, in public disclosures filed with the Securities and Exchange Commission in 2014 and 2015, that company officials had exaggerated profits.”

According to Vanguard Group’s lawsuit, “the true primary purpose in Schorsch’s buying spree” was “to rob from shareholders and give to himself and his friends.” Additionally, the lawsuit claimed that Schorsch “transferred hundreds of millions of dollars to entities controlled by him and by other senior insiders” in 2013 and 2014.

According to Vanguard’s lawsuit and as reported by Joseph DiStefano in a philly.com article, Schorsch and his associates overexaggerated earnings in reports, “convincing Vanguard and other professional investors to buy the stock, after certifying the company had solid financial controls and honest financial reporting.”