Independent Brokerage Firms Put Schorsch in Penalty Box
According to numerous reports, independent broker dealers are suspending sales of products from the sprawling Schorsch following news of a $23 million fraud at American Realty Capital Properties (ARCP).
The product suspension applies to not only the ARCP REIT but also to the offerings from the Shorsch parent company.
The executive-search consultant Mark Elzweig said in an interview that” the scandal has tarnished the entire Schorsch brand. In other words, although these are two separate corporate entities, their brands are linked in terms of their public image.”
“This is unfortunate,” Elzweig said, “considering that ARCP had built up a very strong brand and strong relationships with advisors who valued what the company had brought to the non-traded REIT niche”.
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