American Realty Capital Properties Inc (NASDAQ:ARCP) discovered frauds in its accounting files and calculations. The company announced on December 25, 2014, that it is still receiving liability waivers from its creditors.  An extension has been granted to REIT for the submission of its financial statements for full year and earnings report of the third quarter of the fiscal year 2014.

The accounting fraud was discovered around 3 months back, and the irregularities are supposedly in the financial reports of the first and second quarter of the fiscal year 2014. The executive chairman of American Realty Capital Properties Inc (NASDAQ:ARCP), Nicholas Schorsch, chief operating officer, Lisa Beeson, and chief executive, David Kay, have abandoned the company at this time of need.

As soon as the executive chairman announced that he would be resigning, the stocks of New York REIT Inc (NYSE:NYRT) declined by 8.6 percent. It is important to mention here that Nicholas Schorsch chairs New York REIT too.

What is interesting to mention here is the fact that the chief operating officer of American Realty Capital Properties Inc (NASDAQ:ARCP), Lisa P. McAlister, sued the Nicholas Schorsch, saying that he intentionally asked the employees to change the company’s financial records and bills. This action of Ms. Lisa came after Mr. Nicholas tried to use the company’s COO as an escape goat for all the fraudulent activities that had been happening in the company.

Korn Ferry has been assigned the task of finding a new chief executive officer and a chairman for the company. American Realty Capital Properties Inc (NASDAQ:ARCP) has specifically asked that the chairman should not be an executive.

American Realty Capital recently released a press report whereby the company announced that it would be willing to reduce the debt to its creditors to $3.6 billion. The company also announced that it has some liquid assets that are worth around $250 million.

The management of the company mentioned that it would certainly pay its shareholders their promised dividends; however, the distribution will take place after the company has submitted all its financial statements. Moreover, American Realty Capital Properties Inc (NASDAQ:ARCP) also revealed that it would be changing its policy on dividends in the coming months.

Interim chief executive officer, William Stanley, while talking to the press, said that the company will make a comeback very soon. He further assured the investors that they do not need to worry. The company is currently working on its Cole Real Estate Investments Inc (NYSE:COLE). Rumors have it that Cole Real Estate will be bought by RCS Capital Corp (NYSE:RCAP), a company chaired by Nicholas Schorsch.

The stocks of American Realty Capital Properties Inc (NASDAQ:ARCP) have seen a decline of 34 percent in the past 3 months. During the last trading day of December 25, 2014, the company started its stocks at a price of $8.05 and closed at an increased price of $8.33, after hitting the highest figures of $8.40.

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