2013 has been a tough year for Tony Thompson and many who purchased investments offered by the real estate investment firm, Thompson National Properties (TNP). To kick off the year, investors in TNP Strategic Realty Trusts were informed that monthly dividends would be cut from monthly payments to quarterly payments. This followed TNP’s default on interest payments to investors in various TNP Notes.
The 2012 default gave rise to an investigation and complaint filed in 2013 by the Financial Industry Regulatory Authority (FINRA) against Mr. Thompson and TNP Securities. FINRA alleged that TNP and Mr. Thompson defrauded investors who bought the Notes sponsored by TNP. Unfortunately for Mr. Thompson, this led to his forced resignation from the board of TNP Strategic Realty Trust and the board refused to renew his contract as adviser.
In addition, the TNP Strategic Realty Trust fired their accounting firm, McGaldrey LLP., following an investigation by the Securities and Exchange Commision(SEC) that alleged Mr. Thompson misled the board of directors regarding certain loans and acquisitions.
Brokerage firms that sold investments sponsored by TNP have a fiduciary duty to perform adequate due diligence on any investment they offer. Firms also have a duty to only recommend investments that are appropriate for their clients in light of their clients’ particular age, investment experience, net worth, and investment objectives. Given the current state of the TNP Notes, and the problems discussed above concerning TNP Strategic Realty Trust, it seems that many firms recommended these products inappropriately. If proven, investors in these products may be able to recover their losses through a FINRA arbitration claim.
The White Law Group continues to investigate the liability of brokerage firms that sold the following TNP investments:
TNP Strategic Realty Trust Inc
TNP 12% Notes Program LLC
TNP 2008 Participating Notes Program LLC
TNP Profit Participation Program LLC
TNP Venture Fund III
To speak with a securities attorney regarding your litigation options, please call 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, visithttp://www.whitesecuritieslaw.
