Fundrise Fires CFO Over Extortion Allegations

Fundrise, perhaps the oldest and best-known crowdfunding firm in existence, has fired CFO and treasurer Michael McCord (pictured right, opposite CEO and founder Ben Miller), alleging the executive tried to extort more than $1M from the company, The Real Deal reported yesterday based on an SEC filing.

Fundrise general counsel Bjorn Hall assured investors in a Feb. 10 letter that claims the company acted inappropriately in two real estate deals were without merit. Still, Hall wrote the company takes all allegations seriously and will investigate. Fundrise is now submitting itself to a third-party auditor to investigate.

McCord joined Fundrise in 2014 after working at KPMG. Miller will temporarily take over his duties. This follows co-founder Dan Miller's departure from the firm in October.

Fundrise has been on a tear lately with its eREIT, selling out investment opportunities in under an hour on three separate occasions. [TRD]

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