Connect with us

Hi, what are you looking for?

Jewish Business News

Leadership & A-List

2015, Here We Go: Nicholas Schorsch No Longer a Billionaire

Key Speakers At The Milken Institute Global Conference

Things are looking gloomy these days for Nicholas Schorsch. He is reportedly no longer a billionaire, he resigned last week as chairman of ARCP and his hold on RCS Capital is crumbling as people call for his resignation in the wake of a new lawsuit which accuses the hedge fund manager of asking an employee to falsify accounting documents.

Lisa McAlister, a former chief accounting officer of American Realty Capital Properties, filed the lawsuit in which she claims that she was fired by Schorsch only because she brought the accounting errors to his attention. She claims that she discovered deliberate attempts to hide various accounting mistakes in the firm’s books.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

AR Capital, of course, has dismissed her allegations as groundless. It released a statement saying, “Mr. Schorsch denies the allegations and intends to defend against the claims vigorously. We are confident that Mr. Schorsch has engaged in no unlawful conduct. Although the ARCP Audit Committee investigation is continuing, we understand that to date there has not been any conclusion of unlawful conduct by Mr. Schorsch.” But Schorsch still resigned anyway.

American Realty Capital Properties is a $7.35 billion market cap real estate investment trust.

Now Business Insider is reporting that his days with RCS Capital are numbered. “We see the resignation of Mr. Schorsch as imperative, ” William Katz, a Citigroup Global Markets analyst, wrote in a research note on Thursday.

Katz added that Schorsch should go, “to quell the concern on the shares, as the longer he is involved with the firm the longer the overhang and questions on RCAP’s financial statements will likely persist.”

Meanwhile Forbes is reporting that Schorsch is not even a billionaire anymore. The publication has implied that his wealth and status may just have been a house of cards writing, “analysts have long complained that the company management–and in particular Schorsch–have had difficulty providing transparency, and that Schorsch became inappropriately adversarial when questions were raised about the company’s numbers. Analysts noticed sloppy accounting errors well before the October admission.”

Now his firms have plummeted in value based on new assessments of their holdings and this has reduced Schorsch’s own estimated wealth by as much as $1 billion.

Considering the time of year maybe Mr. Schorsch should ask for some help from another Nicholas, St Nic that is.



You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.