REIT paid $8M to settle SEC charges over overstated AFFO; ex-CFO convicted
American Realty Capital Properties (VEREIT, Inc.) · Net lease real estate investment trust
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Books edit log
The edit log of the AFFO workbook would show last-hour changes before filing.
Can mislead when: Logs can be disabled at database level (auditors qualified this in year one) or tampered with on export. Kubr needs the company to cooperate.
Operating-metric verification
Rebuilding AFFO from audited figures would not match the reported number.
Can mislead when: Contract staff do not appear in EPFO. Vahan access needs licensed APIs. Some businesses have no physical trace.
Governance signals
Senior finance involvement would show in governance records.
Can mislead when: Private companies file late, so these signals are lagging. Kubr uses them to support other flags, not to prove anything alone.
Where Kubr services would have helped
Valuation context
Offered in India- C11 Senior finance involvement would show in governance records.
Financial diligence
Offered in India- C10 Rebuilding AFFO from audited figures would not match the reported number.
- C12 The edit log of the AFFO workbook would show last-hour changes before filing.
Portfolio monitor
Offered in India- C10 Rebuilding AFFO from audited figures would not match the reported number.
- C11 Senior finance involvement would show in governance records.
Verified Snapshot
Offered in India- C11 Senior finance involvement would show in governance records.
Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.
Same pattern
A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.