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In Surprise Move, Firm That Impersonated Shareholders To Cast Fake Proxy Votes Will Wind Down Operations

Who besides everyone saw this coming?
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Realty Capital Securities has (allegedly) impersonated its last Boston-based shareholder and will close its doors just after cutting this $3 million check to Massachusetts authorities. Not that the alleged accent work had anything to do with the decision to shutter the thing, of course.

Mark Auerbach, RCS Capital's nonexecutive chairman, in a statement said the decision to wind down the wholesale business "was essential to our continuing efforts to create a leaner, more efficient organization."

To recap: RCS employees (allegedly) went all Method in a few phony phone calls to proxy solicitors, most notably to vote in favor of a deal to ease affiliate American Realty Capital’s $19 billion deal to sell itself to Apollo Global Management. For unrelated reasons, that deal went nowhere, except to a $6 million deal to sell��you guessed it—RCS to Apollo for $6 million, half of which RCS is now giving away before going away. According to Reuters, Apollo is now considering whether it should pay $6 million for what has just become a defunct operation.

The settlement raises questions about the fate of the $6 million deal announced last month in which RCS Capital agreed to sell the wholesale distribution business to private equity firm Apollo Global Management. Apollo declined comment.

RCS Capital unit to close, pay $3 million fine to Massachusetts [Reuters]
Realty Capital agrees to shut down, pay $3 million fine [Boston Globe]




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