LPL Boots Products From Schorsch Empire
The country's biggest independent broker-dealer has dealt another blow to Nicholas Schorsch's financial empire.
LPL announced Tuesday afternoon that it has " is indefinitely suspending sales of investment products sponsored by" American Realty Capital, RCS Capital -- Schorsch's network of independent B-Ds -- "and their respective affiliates."
The move is the second such rejection in a matter of days, coming less than a week after National Planning Holdings temporary stopped sales of nontraded REITs sponsored or distributed by American Realty Capital.
LPL declined any further comment about the suspended sales beyond the one-sentence announcement.
Representatives from American Realty Capital and RCS Capital did not immediately respond to requests for comment.
The news is the latest in a series of blows to Schorsch's enterprise.
American Realty Capital replaced its chief financial officer and chief accounting officer last week after revealing accounting errors totaling $23 million that went intentionally uncorrected. The disclosure has resulted in an FBI investigation of ARS, according to reports by Bloomberg and Reuters.
On Monday, RCS abruptly terminated a deal to buy Cole Capital from American Realty Capital, revealing an apparent rift between the two publicly traded companies -- which are separate entities, although Schorsch has a controlling interest in both. He is co-founder, chairman and CEO of American Realty Capital, and the executive chairman at RCS..
RCS is the nation's second-largest IBD by advisor count following the acquisition of multiple advisory firms, including IBD network Cetera Financial Group as well as First Allied and the Legend Group, Summit Brokerage Services, Investors Capital and J.P. Turner.
Suleman Din contributed reporting for this story.
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