While I agree with the sentiment of the post, I'm not sure it's entirely accurate. You're 100% focused on the non-traded REIT business that ARCP owned (Cole Capital). First off, that business was a very small portion of their overall revenues. Second, ARCP was in talks to sell the entire business to RCAP just a week prior to the accounting misstatements. They were attempting to rid themselves of the entire business so that they could focus on their "main" business of owning, managing, and leasing triple-net properties around the country.

This sentiment regarding the dubious morality of duping investors into funneling their money into non-traded REITs in order to drive fee income would be much more accurate if directed at RCS Capital (another Scorsch enterprise), where substantially all of their revenues are sourced from that business. ARCP, however, seems like a questionable target at best.