Securities and Exchange Commission v. AR Capital, LLC et al
Plaintiff: Securities and Exchange Commission
Defendant: AR Capital, LLC, Brian S. Block and Nicholas S. Schorsch
Petitioner: Vereit, Inc.
Case Number: 1:2019cv06603
Filed: July 16, 2019
Court: US District Court for the Southern District of New York
Presiding Judge: Analisa Torres
Nature of Suit: Securities/Commodities
Cause of Action: 15:77
Jury Demanded By: None
Docket Report

This docket was last retrieved on June 11, 2020. A more recent docket listing may be available from PACER.

Date Filed Document Text
September 11, 2019 Opinion or Order Filing 20 ORDER: On September 11, 2019, non-party VEREIT, Inc. moved to intervene in this action. ECF No. 14. Accordingly, it is hereby ORDERED that: 1. By October 2, 2019, Plaintiff shall file its opposition, if any, and 2. By October 9, 2019, non-party VEREIT, Inc. shall file its reply, if any. SO ORDERED., ( Responses due by 10/2/2019, Replies due by 10/9/2019.) (Signed by Judge Analisa Torres on 9/11/2019) (ama)
September 11, 2019 Filing 19 NOTICE OF APPEARANCE by Antonia Marie Apps on behalf of Vereit, Inc.. (Apps, Antonia)
September 11, 2019 Filing 18 NOTICE OF APPEARANCE by George S. Canellos on behalf of Vereit, Inc.. (Canellos, George)
September 11, 2019 Filing 17 RULE 7.1 CORPORATE DISCLOSURE STATEMENT. Identifying Other Affiliate Cohen & Steers, Inc. for Vereit, Inc.. Document filed by Vereit, Inc..(Canellos, George)
September 11, 2019 Filing 16 DECLARATION of Lauren Goldberg in Support re: #14 MOTION to Intervene and for Disbursement of Settlement Funds.. Document filed by Vereit, Inc.. (Attachments: #1 Exhibit A, #2 Exhibit B, #3 Exhibit C, #4 Exhibit D)(Canellos, George)
September 11, 2019 Filing 15 MEMORANDUM OF LAW in Support re: #14 MOTION to Intervene and for Disbursement of Settlement Funds. . Document filed by Vereit, Inc.. (Canellos, George)
September 11, 2019 Filing 14 MOTION to Intervene and for Disbursement of Settlement Funds. Document filed by Vereit, Inc..(Canellos, George)
July 18, 2019 Filing 13 MEMO ENDORSEMENT on re: #12 Letter, filed by Securities and Exchange Commission. ENDORSEMENT: GRANTED. The Clerk of Court is directed to reopen the case. By October 17, 2019, the parties shall file a status letter. (Signed by Judge Analisa Torres on 7/18/2019) (cf)
July 18, 2019 Filing 12 LETTER addressed to Judge Analisa Torres from Victor Suthammanont dated July 18, 2019 re: Case Status and Leaving Case Open for Filings Regarding Distribution Pursuant to Final Judgments. Document filed by Securities and Exchange Commission.(Suthammanont, Victor)
July 17, 2019 Opinion or Order Filing 11 FINAL JUDGMENT AS TO DEFENDANT BRIANS. BLOCK: IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement consisting of (i) 82,835 operating partnership units of VEREITOperating Partnership, L.P. ("OP Units") and (ii) $339,440, representing profits gained as a result of conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $31,268. Defendant's liability of (i) 82,835 OP Units and (ii) $370,708 is on a joint and several basis with defendant AR Capital, LLC ("AR Capital"), which is ordered to disgorge (i) 2,922,445 OP Units and (ii) $12,313,856 in a final judgment filed concurrently with this Final Judgment. There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. (As further set forth in this Order.) Brian S. Block terminated. (Signed by Judge Analisa Torres on 7/17/2019) (cf)
July 17, 2019 Filing 10 PROPOSED JUDGMENT. Document filed by Securities and Exchange Commission. (Suthammanont, Victor)
July 17, 2019 Opinion or Order Filing 9 FINAL JUDGMENT AS TO DEFENDANT AR CAPITAL, LLC: IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement of 2,922,445 operating partnership units of VEREIT Operating Partnership, L.P. ("OP Units"), representing profits gained as a result of conduct alleged in the Complaint. Defendant shall satisfy this obligation by surrendering and returning, or causing members of AR Capital to surrender and return, 2,922,445 OP Units to VEREIT, Inc. within 14 days of entry of this Final Judgment and VEREIT shall cancel said disgorged units. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is additionally liable for disgorgement of $11,275,065, representing profits gained as a result of conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $1,038,791, for a total of $12,313,856, and Defendant is further liable for a civil penalty in the amount of $14,000,000 pursuant to Section 20(d)(2) of the Securities Act [15 U.S.C. 77t(d)(2)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. 78u(d)(3)]. Defendant shall satisfy this obligation by paying $26,313,856 to the Securities and Exchange Commission within 14 days after entry of this Final Judgment. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain jurisdiction of this matter for the purposes of enforcing the terms of this Final Judgment. (As further set forth in this Order.) AR Capital, LLC terminated. (Signed by Judge Analisa Torres on 7/17/2019) (cf)
July 17, 2019 Opinion or Order Filing 8 FINAL JUDGMENT AS TO DEFENDANT NICHOLAS S. SCHORSCH: IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable for disgorgement consisting of (i) 1,542,851 operating partnership units of VEREIT Operating Partnership, L.P. ("OP Units") and (ii) $6,316,291, representing profits gained as a result of conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $581,931. Defendant's liability of (i) 1,542,851 OP Units and (ii) $6,898,222 is on a joint and several basis with Defendant AR Capital, LLC ("AR Capital"), which is ordered to disgorge (i) 2,922,445 OP Units and (ii) $12,313,856 in a final judgment filed concurrently with this Final Judgment. IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant is liable, individually, for a civil penalty in the amount of $7,000,000 pursuant to Section 20(d)(2) of the Securities Act [15 U.S.C. 77t(d)(2)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. 78u(d)(3)]. Defendant shall satisfy this obligation by paying $7,000,000 to the Securities and Exchange Commission within 14 days after entry of this Final Judgment. (As further set forth in this Order.) There being no just reason for delay, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure, the Clerk is ordered to enter this Final Judgment forthwith and without further notice. Nicholas S. Schorsch terminated. (Signed by Judge Analisa Torres on 7/17/2019) (cf)
July 17, 2019 Case Designated ECF. (pc)
July 17, 2019 Magistrate Judge Henry B. Pitman is so designated. Pursuant to 28 U.S.C. Section 636(c) and Fed. R. Civ. P. 73(b)(1) parties are notified that they may consent to proceed before a United States Magistrate Judge. Parties who wish to consent may access the necessary form at the following link: #http://nysd.uscourts.gov/forms.php. (pc)
July 17, 2019 CASE OPENING INITIAL ASSIGNMENT NOTICE: The above-entitled action is assigned to Judge Analisa Torres. Please download and review the Individual Practices of the assigned District Judge, located at #http://nysd.uscourts.gov/judges/District. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. Please download and review the ECF Rules and Instructions, located at #http://nysd.uscourts.gov/ecf_filing.php. (pc)
July 16, 2019 Filing 7 SETTLEMENT AGREEMENT Consent and Proposed Final Judgment as to Defendant Brian S. Block. Document filed by Securities and Exchange Commission.(Suthammanont, Victor)
July 16, 2019 Filing 6 SETTLEMENT AGREEMENT Consent and Proposed Final Judgment as to Defendant Nicholas S. Schorsch. Document filed by Securities and Exchange Commission.(Suthammanont, Victor)
July 16, 2019 Filing 5 SETTLEMENT AGREEMENT Consent and Proposed Final Judgment as to Defendant AR Capital, LLC. Document filed by Securities and Exchange Commission.(Suthammanont, Victor)
July 16, 2019 Filing 4 NOTICE OF APPEARANCE by Victor Edward Suthammanont on behalf of Securities and Exchange Commission. (Suthammanont, Victor)
July 16, 2019 Filing 3 NOTICE OF APPEARANCE by Nancy A Brown on behalf of Securities and Exchange Commission. (Brown, Nancy)
July 16, 2019 Filing 2 CIVIL COVER SHEET filed. (Berger, Marc)
July 16, 2019 Filing 1 COMPLAINT against AR Capital, LLC, Brian S. Block, Nicholas S. Schorsch. Document filed by Securities and Exchange Commission.(Berger, Marc)

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Defendant: AR Capital, LLC
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Defendant: Brian S. Block
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Defendant: Nicholas S. Schorsch
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Plaintiff: Securities and Exchange Commission
Represented By: Marc Peter Berger
Represented By: Victor Edward Suthammanont
Represented By: Nancy A Brown
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Petitioner: Vereit, Inc.
Represented By: George S. Canellos
Represented By: Antonia Marie Apps
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