Vereit Inc (fka VER)

[Enterprising Investor]

American Realty Capital facing criminal probe over accounting-sources (10/31/14)

NEW YORK, Oct 31 (Reuters) - U.S. authorities have opened a criminal probe of American Realty Capital Properties in the wake of the real estate investment trust's disclosure that it had uncovered accounting problems, two sources familiar with the matter said on Friday.

The Federal Bureau of Investigation is conducting the investigation along with prosecutors from U.S. Attorney Preet Bharara's office in New York, the sources said. Further details of the probe could not be learned.

American Realty Capital Properties said on Wednesday it would have to restate earnings after it discovered employees "intentionally made" accounting errors that caused it to understate net losses during the first half of 2014. Its chief accounting officer and chief financial officer resigned on Tuesday.

Andy Merrill, a spokesman for American Realty Capital, had no immediate comment.

http://in.reuters.com/article/2014/10/31/usa-arcp-investigation-idINKBN0IK2EY20141031