According to Investment News TNP Strategic Retail Trust REIT fired their accounting firm, McGaldrey, LLP, on April 15th for failing to file two “reportable events” with the SEC last year. “McGladrey notified the REIT last August “that it would no longer be able to rely upon the representation of ” Mr. Thompson.”
According to Investment News one of the reportable events is “related to the REIT making prepayments of acquisition and financing fees to its adviser, TNP Strategic Retail Advisors LLC, which is controlled by Mr. Thompson.” It appears that McGaldrey identified the finincial discrepancy, but still failed to report the event to the SEC.
The TNP REIT has experienced numerous difficulties that appear to stem from co-chief executive and chairman of the board, Tony Thompson. As reported in our earlier post (here), Mr. Thompson is under investigation by the Financial Industry Regulatory Authority (FINRA) for allegedly failing to produce a “privileged log” requested by FINRA.
According to Investment News, “McGladrey notified the REIT last August that it would no longer be able rely upon the representations of” Mr. Thompson, according to the filing. In addition, three independent directors with TNP Strategic Reality trust allege that” Mr Thompson, “”misled the board of directors with respect to” certain loans and acquisitions, according to a separate SEC filing.” The full article is available here.
The White Group continues to follow the TNP and Tony Thompson investigation on behalf of investors. It appears that investors in TNP REIT and TNP 12 percent notes may have suffered substantial losses and The White Law Group is investigating the liability that brokerage firms that sold TNP 12 Percent Notes and TNP REIT may have for failure to perform adequate due diligence on these offerings.
To determine if your brokerage firm may be liable for your investment losses in a Thompson National Properties offering, 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 http://www.whitesecuritieslaw.