The Justice Department announced charges last week against Brian Block, the former chief financial officer of the real estate company American Realty Capital Partners, which changed its name to Vereit last year. He is accused of conspiracy, securities fraud and providing false information in filings with the Securities and Exchange Commission for inflating the company’s funds from operations, a crucial non-GAAP measure of the performance of real estate investment trusts.

His lawyer stated that Mr. Block “is completely innocent and will be exonerated in court.”

The company’s former chief accounting officer, Lisa P. McAlister, pleaded guilty in June to similar charges, although the case was sealed until prosecutors unveiled the indictment of Mr. Block.

She admitted that American Realty had made an error in the first quarter of 2014 in the calculation of its adjusted funds from operations, or F.F.O., but failed to correct the figure once it came to light, which resulted in reporting higher amounts. The charges against her claim that she and Mr. Block later met in his office to enter false numbers into a spreadsheet used to report results in the next quarter to cover up the inflated figures.

According to the National Association of Real Estate Investment Trusts, the leading organization for the industry, funds from operations is a widely used standard for reporting performance that eliminates fluctuations in real estate values that can make it harder to compare how different companies are performing. Although American Realty’s financial statements were correct under GAAP, the more important number that real estate investment trusts want investors and analysts look at was F.F.O., so reporting incorrect results can amount to fraud if it is done intentionally.

Nor is it a defense to a fraud charge that correct information was reported in the financial statements. When a company promotes its results by using a non-GAAP measure, then any false figures can result in misleading investors because they are not required to ferret out the truth by overlooking what a company chooses to highlight.