Tony Thompson is fighting back for his former position as CEO and president of Strategic Realty Trust Inc. Mr. Thompson was replaced by Andrew Batinovich in August after the Financial Industry Regulatory Authority (FINRA) filed a complaint against Mr. Thompson and his brokerage firm TNP Securities for allegedly defrauding investors who bought $50 million in high-yield promissory notes (Click here, to read more).
According to Investment News, a group of executives and investors called the SRT Shareholders Coalition launched a proxy fight to elect a new board and request the resignation of Mr. Batinovich. The group alleges that the current directors of the REIT have tripled their compensation and doubled the REIT’s overhead costs.
In response, Strategic Realty Trust sent out a letter to investors stating that “Mr. Thompson is making misleading statements to persuade our shareholders to call a special meeting in a desperate attempt to save Thompson National Properties at your expense.” Based on FINRA’s investigation, it appears that Thompson National Properties is insolvent and has a negative net worth of over $40 million. In addition the letter notes that Mr. Thompson and his management company TNP Property Managet are suing the REIT for more than $10 million.
According to Investment News, FINRA dropped the charges against Thompson National Properties due to “jurisdictional reasons,” however similar charges against Mr. Thompson and TNP Securities remain in effect.
The White Law Group continues to investigate the liability of brokerage firms that sold the following TNP investments:
– Strategic Realty Trust Inc
– TNP 12% Notes Program LLC
– TNP 2008 Participating Notes Program LLC
– TNP Profit Participation Program LLC
– TNP Venture Fund III
Brokerage firms have a fiduciary duty to make investment recommendations that are in the best interest of their clients and consistent with the clients age, net worth, investment objectives, and risk tolerance. Brokerage firms that make unsuitable investment recommendations may be liable for investment losses.
To determine if your brokerage firm may be liable for your investment losses, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritiesLaw.