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Written by 4:14 pm Blog, Securities Fraud Articles

Investigation into TNP Vulture Fund VIII Investment Losses

Have you suffered investment losses with TNP Vulture Fund VIII or another Thompson National Properties fund? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

Thompson National Properties, located in Irvine, California, was founded in 2008. The company specializes in real estate investment opportunities through private placement offerings such as REITs and Notes. According to TNP properties website, their offerings are intended for “accredited investors such as institutions, trusts and high-net-worth individuals[.]”

Unfortunately many Thompson National Properties funds have not performed as expected in recent months. In addition, the company’s founder, Tony Thompson, has been under investigation by the Securities and Exchange Commission for some time now (read more here). Based on what is now known about TNP Vulture Fund VIII, it appears that some brokerage firms that sold the fund failed to perform the adequate due diligence and sold the investment because of the large commission associated with the sales of the offering and not because the investment was in the best interest of investors.

According to form Reg-D filed with the SEC, TNP Vulture Fund VIII was launched in 2008 and offered brokerage firms approximately 10.5% on commissions for selling the fund. The extremely high commissions offered for selling TNP Vulture Fund VIII may have provided some brokers with enough incentive to overlook suitability requirements.

Private placements are typically high risk investments and lack liquidity, hence they are unsuitable for most retail investors. Brokerage firms have a fiduciary duty to make sure investment recommendations are in line with a client’s age, risk tolerance, net worth, investment objective and financial needs. If a broker fails to perform adequate due diligence they may be liable for investment losses.

If you have suffered losses in TNP Vulture Fund III or another TNP Fund, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit https://whitesecuritieslaw.com.

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