Cetera Stops Selling AR Capital REITs

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Cetera Stops Selling AR Capital REITs

Cetera Financial Group, which is a network of retail brokerages owned by RCS Capital Corporation, has stopped selling ARC-branded real estate investment trusts and other alternative investments.

All ten of Cetera’s broker-dealers ceased the sale of all AR Capital products until a review of the products is completed.

AR Capital products are distributed by Realty Capital Securities, which is a wholesaling broker-dealer also owned by RCS Capital Corporation.

Cetera’s cessation of sales came the day after Massachusetts charged RCS with fraudulently rounding up proxy votes to support real estate deals sponsored by AR Capital, which is owned by Nick Schorsch and William Kahane.

In an administrative complaint, Massachusetts Secretary of the Commonwealth William Galvin claimed agents of RCS impersonated shareholders and cast fake votes for investment programs sponsored by AR Capital.

Executives at other independent broker-dealers claim that major clearing firms and other broker-dealers could possibly suspend sales of AR Capital products later this week following the fraud charges against RCS.

Joseph Kuo, a spokesman for Cetera Financial Group, neither confirmed nor denied Cetera’s suspension of AR Capital products: “We conduct ongoing due diligence of all products. As a matter of policy, we do not publicly discuss specific products and specific product companies.”

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.

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