Our Law Firm is investigating the sale of American Realty Capital Properties (NasdaqGS: ARCP) (“American Realty”) by FINRA broker-dealers. American Realty is a real estate investment trust (“REIT”). Specifically, we are investigating the level of due diligence performed by FINRA broker-dealers who sold American Realty, and whether customer accounts were over-concentrated in American Realty. Our investigation comes on the heels of American Realty’s announcement that accounting errors were “intentionally” made in the amount of about $23 million. Since trading at about $12.50 at the end of October, American Realty has plummeted 32% and is currently trading at about $8.60 per share. American Realty had been trading as high as $14.88 per share in March of this year, representing an eight month decline of about 43%.
Under FINRA Rules, broker-dealers have an obligation to conduct adequate due diligence into securities products before they are approved for sale by their brokers. Further, brokers who sell securities to their customers have an obligation to make suitable recommendations in light of the customer’s age, other investments, financial situation and needs, tax status, and other factors.
If you invested in American Realty through a FINRA broker-dealer and have information relating to this investigation, please contact our office, toll free, at 888-997-9956.
