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Schorsch’s RCS Seeks Distance From ARCP as Empire Fractures

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With part of Nicholas Schorsch’s real estate empire fracturing into warring factions, a chunk of his fortune may depend on whether RCS Capital Corp. can distance itself from the accounting missteps at American Realty Capital Properties Inc.

RCS, an owner of broker-dealers that sell Schorsch’s real estate investment products, called off the roughly $700 million acquisition of a unit of American Realty Capital Properties, or ARCP, after the seller reported intentionally concealed errors. ARCP sued last week, saying RCS improperly reneged. Schorsch, who holds about 29 percent of RCS, is chairman of both firms.