Posts tagged ‘TNP Strategic Retail Trust fraud’

Tony Thompson Asked to Resign

According to Investment News, the board of TNP Strategic Retail Trust has asked for the resignation of co-CEO and founder, Tony Thompson. In addition, the board of the nontraded REIT has relieved Thompson as manager of the REIT’s properties.

Although Thompson still has connections to the REIT, according to his attorney, the REIT’s board has indicated that they are not planning on renewing Thompson contract as a real estate adviser. Thompson remains on the board, and is disputing the property management contracts.

These recent decisions by the REIT’s board follow the Financial Industry Regulatory Authority’s (FINRA) complaint against Thompson involving multiple promissory notes affiliated with Thompson’s firm, TNP Securities. According to Thompson’s BrokerCheck report, FINRA allege that Thompson and his firm, “failed to disclose or omitted material facts concerning the entities venture,” and therefore “engaged in transactions, practices or courses of business which operated as a fraud or deceit upon the purchaser” which violates the Securities Exchange Act of 1934.

The note programs involved in the FINRA complaint included the TNP 12% Notes Program LLC, the TNP 2008 Participating Notes Program LLC and the TNP Profit Participation Program LLC. To learn more about the TNP Note program’s read our previous posts available here.

The White Law Group has been following the Thompson situation for some time and continues to investigate potential FINRA claims on behalf of investors seeking to recovery investment losses.

Broker-dealers have a fiduciary duty to perform adequate due diligence on any investment. The Financial Industry Regulator Authority (FINRA) requires that broker-dealer fully disclose all the risk in any investment when making recommendations, and ensure that the investment is suitable for their client. Broker-dealers that make unsuitable investment recommendations or fail to adequately disclose risks associated with the investment may be liable for investment losses.

If you feel that your broker-dealer misrepresented TNP Strategic Retail Trust or another investment offering with Thompson National Properties, the securities attorneys of The White Law Group may be able to help you recover your losses through FINRA Arbitration. For a free consultation please call The White Law Group at (312)238-9650.

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.

To learn more about The White Law Group, visit www.WhiteSecuritiesLaw.com.

TNP Strategic Retail Trust cuts dividend.

According to a recent SEC filing, because of loan compliance issues with its lenders, TNP Strategic Retail Trust Inc. will not pay a dividend in the first quarter of 2013 and may not pay any type of distribution for 2013.

Based on reports, short-term liquidity issues, including an accelerated maturity date of loans, lender fees and the cost of potential litigation with lenders, are the cause of the cut in distributions for the REIT, which has $272 million in assets.

The SEC filing also stated that one of the REIT’s lenders, Torchlight Investors LLC, is blocking the REIT from naming a new adviser, Glenborough LLC.

This news comes shortly after Tony Thompson, the head of TNP Strategic Retail Trust and Thompson National Properties, sent a note to brokerage firms promoting the REITs strong outlook.  Specifically, Mr. Thompson apparently stated that its net asset value was 6% higher than its share price (Such a discrepancy between a REIT’s selling price and its Net Asset Value, or NAV, could be dilutive to shareholders and provide brokers with a strong sales pitch).

The White Law Group continues to investigate the liability that brokers-dealers may have for making unsuitable investment recommendation and misrepresenting the risks of non-traded REITs like TNP Strategic Trust.

Broker-dealers have a fiduciary duty to perform adequate due diligence on any investment. The Financial Industry Regulator Authority (FINRA) requires that broker-dealer fully disclose all the risk in any investment when making recommendations, and ensure that the investment is suitable given their clients age, risk tolerance, financial objectives, net worth, and investment experience.

If you feel that your broker-dealer misrepresented TNP Strategic Retail Trust or another investment offering with Thompson National Properties, the securities attorneys of The White Law Group may be able to help you recover your losses through FINRA Arbitration. For a free consultation please call The White Law Group at 312-238-9650.

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.

To learn more about The White Law Group, visit http://www.whitesecuritieslaw.com

More Bad News for TNP Strategic Retail Trust Investors

According to reports, noted real estate investor Tony Thompson is having trouble with several real estate programs he started in 2008.

These reports state that Thompson has been struggling since last summer to make payments on various note programs, which he sold through independent broker-dealers in 2008 and 2009 to raise at least $31.6 million in capital to launch Thompson National Properties LLC. In December, one of Mr. Thompson’s note programs, the TNP 2008 LLC, missed a payment. And in a filing with the Securities and Exchange Commission on Jan. 15, his nontraded REIT, the TNP Strategic Retail Trust, said it was actively negotiating forbearance agreements with respect to two loans on six real estate properties in an effort to stave off foreclosure.

Mr. Thompson, chief executive of Thompson National Properties, launched his firm in 2008. Earlier, he founded Triple Net Properties LLC, which packaged real estate investments known as tenant-in-common exchanges, which were sold through independent broker-dealers during the real estate bubble of the last decade. A related company, NNN Realty Advisors Inc., in 2007 merged with Grubb & Ellis Co. Burdened by debt, that once-iconic commercial real estate company filed for bankruptcy protection last February and subsequently sold its remaining assets for $30 million. Since 2008, Thompson National Properties has launched 17 investment programs, the largest being the nontraded REIT, the TNP Strategic Retail Trust. The REIT has bought grocery and necessity-anchored retail shopping centers valued at $300 million.

In a setback for investors, however, the REIT is also moving its distributions to quarterly payments, from monthly, due to short-term liquidity problems and has suspended share redemptions except in case of death or disability, according to today’s SEC filing. It is also actively negotiating with a new potential adviser, Glenborough LLC. The REIT faces a payment of $1.28 million by Jan. 18, according to an SEC filing. In a letter to investors this month, Mr. Thompson said the TNP 2008 Participating Notes Program intends to make a payment Jan. 21.

The White Law Group continues to investigate the liability that brokerage firms and financial professionals may have in recommending the TNP real estate investments.

Brokerage firms and financial professionals have a fiduciary duty to perform adequate due diligence on any investment they recommend.  Based on what is now know about the TNP Strategic Retail Trust and TNP 2008 Participating Notes Program, it does not appear that the firms that sold these investments did perform adequate due diligence.

If you invested in a Thompson National Properties investment and would like to discuss your litigation options, please call the securities attorneys at 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 from with offices in Chicago, Illinois and Boca Raton, Florida.

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

Bad News for TNP Strategic Retail Trust Investors?

It is being reported that Thompson National Properties LLC has ducked a default on one of its note programs, but investors will be getting less of a payout than they were promised.

Thompson National Properties is the sponsor of a nontraded real estate investment trust, TNP Strategic Retail Trust Inc. In a filing with the Securities and Exchange Commission last week, the REIT reported that a majority of note holders in the program voted to modify the terms, moving it out of default.

The TNP 12% Notes Program LLC suspended interest payments to investors in July but said it intended to restart them in 2013.

The SEC filing also stated that investors will see sharply lower interest payments and the notes’ maturity has been extended until 2016.

The TNP 12% Notes Program raised $21.5 million from 418 investors in 2008 and 2009. The purpose of the notes was to meet general obligations of the sponsor. In July, Thompson National Properties said it would pay investors the remaining interest and principal on or before the maturity date of June 2013.

Thompson National Properties’ largest investment program is its REIT, TNP Strategic Retail Trust, which has assets valued close to $200 million.

Although it appears that Thompson has avoided default at this time, this is certainly not good news for investors and if the firm follows the pattern of REITs that preceded it, it is certainly possible that further negative news could be in the offing.

The White Law Group continues to investigate REIT investments like Thompson National Properties, and specifically, the liability that brokerage firm’s have for selling these products.  Brokerage firms and financial advisors have a fiduciary duty to perform adequate due diligence on any investment they recommend and to ensure that such recommendations are appropriate for their client in light of that particular clients’ age, income, investment experience, investment objectives, and net worth.

Based on what is now known about REITs, and given the high commissions financial advisors receive for pushing these products, it now appears that the firms that sold these products did so because of the high commission structure and not because the investments were always in the best interests of their clients.

Fortunately for investors, any losses sustained in these products may be recoverable through the FINRA arbitration process.  FINRA is the regulatory body for the securities industry and they have a dispute resolution forum for resolving securities disputes.

If you purchased TNP 12% Notes or another Thompson National Properties investment and are interested in information regarding your litigation options, 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.  The firm has represented dozens of REIT investors in FINRA arbitrations to recover their losses in these high-risk, illiquid investments.

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

Recovery of TNP Strategic Retail Trust Losses

Have you suffered losses in TNP Strategic Retail Trust?  If so, the securities attorneys of The White Law Group may be able to help.

TNP Strategic Retail Trust, was declared effective by the SEC on August 7, 2009.  The REIT’s fundraising efforts have been lackluster compared with many other non-traded REITS (only $21 million was raised through the end of Q3 2010 according to REIT Wrecks).

TNP Strategic Retail Trust apparently used the limited money raised to acquire two retail properties the 170,000 square foot Waianae Mall, on the North Shore of Oahu, and the 94,574 square foot Moreno Valley Marketplace in Rancho Belago, California.

Reports further indicate that TNP Strategic Retail Trust suffered a net loss through the first 9 months of 2010, as well as having a negative operating cash flow during the same period.  This all raises significant questions regarding the viability of TNP Strategic Retail Trust going forward.

The White Law Group is investigating the liability that brokerage firms may have for recommending TNP Strategic Retail Trust.  Brokerage firms have a fiduciary duty to perform due diligence on any investment prior to offering it for sale to its clients.  Broker dealers also are obligated to ensure that any recommendation it makes is appropriate in light of the investor’s age, investment experience, net worth, and investment objectives.  Based on the information now known about TNP Strategic Retail Trust, it appears that the firm’s that recommended the REIT to its clients may have done so improperly.

The commissions offered by REITs like TNP Strategic Retail Trust to the brokerage firms that sell these investments is typically between 7-10%.  This commission is considerably higher than more traditional investments like stocks or mutual funds and generally explains the brokerage firms’ motivation in recommending these investments.

If you believe that you have suffered losses as a result of your investment in TNP Strategic Retail Trust, 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 http://www.whitesecuritieslaw.com.