On June 23, 2020, the SEC instituted settled cease-and-desist proceedings against VEREIT, Inc. The SEC stated: "This proceeding arises from ARCP's violations of the antifraud and books and records provisions of the federal securities laws. ARCP, now known as VEREIT, Inc. (hereinafter, "ARCP" or the "Company"), is a real estate investment trust ("REIT") primarily engaged in the business of acquiring, owning, and managing single-tenant commercial real estate properties that by February 2014 had grown to be the nation's largest publicly-traded net lease REIT. ARCP, acting through its then Chief Financial Officer, Brian S. Block (the "CFO"), and its then Chief Accounting Officer, Lisa McAlister (the "CAO"), falsely reported and manipulated the Company's "Adjusted Funds from Operations" or "AFFO," a key non-GAAP performance metric relied on by ARCP management, investors, and analysts to assess ARCP's financial performance from at least May 2014 until the Company's initial disclosure on October 29, 2014 of their misconduct (the "Relevant Period")."

The SEC stated that: "[It] charged VEREIT, Inc., formerly known as American Realty Capital Properties, Inc., a publicly-traded real estate investment trust (REIT) with intentionally overstating a key performance metric. VEREIT has agreed to settle the charges and pay an $8 million penalty that will be distributed to harmed investors "

The SEC stated: "IT IS ORDERED that Miller Kaplan, pursuant to and in accordance with the Omnibus Order, is appointed Tax Administrator for the QSF in the above-referenced proceeding."

The Commission stated: "[F]or good cause shown, IT IS HEREBY ORDERED that the Division's request for an extension of time until March 31, 2021 to submit a Proposed Plan of Distribution is granted."

The Commission stated: "Notice is hereby given . . . that the Division of Enforcement has submitted to the Commission a proposed plan of distribution (the “Proposed Plan”) for the distribution of monies paid by VEREIT, Inc. formerly known as American Realty Capital Properties, Inc. (“ARCP” or the “Respondent”) in the above-captioned matter."

The Commission stated: "The Division of Enforcement (“Division”) submits the following plan of distribution (“Proposed Plan”) to the Securities and Exchange Commission (“Commission”) . . . . If approved . . . the civil penalties paid by VEREIT, Inc. formerly known as American Realty Capital Properties Inc. (“ARCP” or “Respondent”) will be transferred to the related civil action, Securities and Exchange Commission v. AR Capital, LLC, No. 19-cv-06603-AT (S.D.N.Y.) (the “Civil Action”) for distribution to harmed investors in accordance with Civil Action’s distribution plan approved by the Court on May 18, 2021."

The Commission ordered that: "the Proposed Plan is approved . . . ; and . . . the Commission staff shall transfer the Vereit Fair Fund, plus any accrued interest, less any taxes and fees, to the Civil Action for distribution to harmed investors in accordance with the AR Capital Plan approved by Court."