American Realty Capital Said to Face Accounting Errors Probe
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American Realty Capital Properties Inc., the landlord that lost almost a fifth of its market value on Oct. 29 after saying an accounting error was intentionally concealed, is facing an investigation by the FBI and federal prosecutors, a person familiar with the matter said.
American Realty, the largest U.S. owner of single-tenant buildings, plunged 19 percent after saying that earlier financial statements overstated adjusted funds from operations, a measure of REIT cash flow. Chief Financial Officer Brian Block and Chief Accounting Officer Lisa McAlister stepped down after the audit committee found some errors were intentionally left uncorrected after they were identified.