This page has been archived and commenting is disabled.
When The Tide Rolls Out - COO, CEO & Chairman Flee FBI-Probed REIT
Run away... just 6 weeks ago when we first highlighted the FBI was probing multi-billion-dollar REIT American Realty Capital, the company's stock crashed, wiping out billions leading the CEO to note, "we don't have bad people, we had some bad judgment there." Now, as The WSJ reports, it appears the CEO David Kay, COO Lisa Beacon, and founder & Executive Chairman Nicholas Schorsch have all decided to "stabilize the company and... strengthen future leadership and strategy," by jumping ship. We are sure their jets will be fueled up and ready for the nearest extradition-free nation...
As The Wall Street Journal reports,
Embattled real-estate investment trust American Realty Capital Properties Inc. announced a dramatic management shake-up early Monday morning as Nicholas Schorsch, the company’s founder and executive chairman, resigned.
The move comes just over six weeks after an accounting scandal shook the company and erased more than $3 billion from the REIT’s market value.
...
Mr. Schorsch also resigned from the boards of several notraded REITs managed by Cole Capital Advisors Inc., an affiliate of American Realty Capital Properties.
...
In a surprise move, David Kay, the company’s chief executive since the end of September, and Lisa Beeson, a longtime deputy to Mr. Schorsch, also stepped down Monday morning. Mr. Kay had been handling the damage control after the accounting irregularities had been announced, meeting with investors and analysts in an effort to contain the scandal.
The company said that board member William Stanley had been appointed lead independent director and would sever as interim chief executive officer and chairman until replacements could be found.
“The actions taken today will stabilize the company and are necessary to strengthen future leadership and strategy, improve governance, and complete a separation from Nick Schorsch and his affiliates,” Mr. Stanley said in a statement. “These actions build on ARCP’s significant real estate assets and asset management capabilities, and will further restore investor confidence in ARCP.”
...
The company said its financial results going back as far as 2013 could no longer be relied upon, and hired outside counsel and auditors to investigate the financial results.
* * *
When the tide rolls back, they will all be exposed...
»
- 11461 reads
- Printer-friendly version
- Send to friend
- advertisements -
Wow, looks like a gold stock. With their obvious mgmt skills they should be applying at Newmont, Barrick, Goldcorp, etc. or absolutely the many scammy juniors. Those guys are always looking for people with 'the right skills'.
So... should this action be filed under "bad" judgement or "good?"
Miserable judgement, as in not being too big to fail.
"the company's stock crashed, wiping out billions leading the CEO to note, "we don't have bad people, we had some bad judgment there."
We ripped off some folks...but we're acting better now...
The last people in the world they have to worry about are the law....
"...It's a gift at these levels. I'm buying every last share I can get my hands on!..."
-- Your Pension Fund Manager
They likely have a list of non-extriditing countries and are shopping for beachfront property.
File it under - the tide is going out - this is only the beginning
They don't have some bad people NOW. But they did have some bad people.
We bad peopled some folks.
Their financial results going back to 2013 could no longer be relied on---; but they could be relied on, until you looked at them. Is this like Quantum Mechanics ?
Oh man, that's brilliant. That's just what we need at this point: a balance sheet in which the numbers change whenever it is observed.
So if you don't like what you see, it's all YOUR fault. Because you looked at the balance sheet!
Yeah but somebody opened the box to check on the cat, poor thing had died....
Wasn't that enough for those schemes that they could legally pay dividends in stock?
So when the rats leave the sinking ship it will start to float again ?
Big rats.
That metaphor is too kind to them. Unlike the rats, these bastards are the ones who caused the sinking.
"We are sure their jets will be fueled up and ready for the nearest extradition-free nation..."
...or will they appear on the "Dead Bankster/Dead CEO list" before they squeal like a rat?
Better not forget the golden parachutes, might have a "mechanical failure".
Are they big enough Democrat bundlers to get the Corzine treatment?
Can you say Enron?
If not, rent the dvd "ENRON" The Smartest Guys In the Room
Become acquainted with the culture that underlies our financial system.
jesus what a pos company. negative earnings, tons of debt, very little cash. a huge single family home rental inventory. they have bigger problems than $23M in overstated earnings.
not to mention to 11% dividend yield
maybe for another quarter or two
seems like there are some ppl on ZH tonight that are a little testy. i guess losing a bunch of money you couldn't afford to lose will do that. Cue the lawsuits and tears, looks like this cycle's bubble is bursting before our eyes.
You really think ZH's are investing in real estate? LOL
oh, no, i don't mean RE in particular, I mean investments going bad in general. there's quite a bit of that going around this month.
This your first day on the board, sparky? Get lost on your way to the Yahoo Finance boards?
yes, yes, jizzaz, 1st day on the board, that's it. go ahead and get all emotional with the rest of the clowns in your circle cuz the market it handing you your own ass on a platter. keep it up, you little bitch.
You learn fast Wait. Well played.
sun tzu..
Actually i just bought ARCP on this downfall.
I consider that betting on a shit "red lobster" REIT.
now investing in Real estate in another issue, and i do not understAnd how buying a house with dollars is a " funny" idea as you suggest.
Of course it depends on where do you live in the world but it is NOT the worst of ideas.
Bzzzzt Nope wrong. ZHers are sick and tired of everything being run by criminals who are bailed out by the treasonous scum who run the government.
And no doubt any prosecutions will be overturned by the appeals court.
http://www.zerohedge.com/news/2014-12-10/insider-trading-legal-following...
REMIC and REIT fraud has a ton to do with why foreclosure fraud got swept under the rug. It's also a big reason why the Secret Electronic Mortgage Society came along. MERS.
Dividend cut on the way?
More like a beheading, like SDRL
have that one also , and miners and f up biotechs.
Now it's funny.
But but it yields 12%!
Until they cut the dividend.
'We're not bad people, we just made some poor decisions'.....oh don't sell yourselves short, I'm sure you're all giant assholes.
c'mon.... it's a REIT....
"real estate NEVER goes down"
[until it does]....
another reason for that indian to run for prez.....
:(
"Bart's not a bad boy, he just does bad things"
Marge Simpson
"Good thing we kept off balance sheet all that paper we bought from them. Thanks Ben!"
They're going to "restore investor confidence"; it says so, right there in the news release. So, what could go wrong ?
Dont mention the I word
When the going gets tough, the tough get going - out of the country in a private jet stuffed with hundred dollar bills.
Cheating people out of their money with a phony investment vehicle is not bad judgement. It is fraud.