Posts tagged ‘TNP Strategic Retail Trust lawsuit’

Troublesome year for Tony Thompson and Thompson National Properties

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.com.

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.

Investors Sue Brokerage Firm for TNP Losses

According to Investment News, some investors are suing independent broker dealer, Berthel Fisher & Co. Financial Services, for failure to perform adequate due diligence on the TNP 2008 Participating Notes Program. In addition, the claim alleges that Berthel Fishers failed to make the necessary disclosures to investors regarding the deal.

According to the claim filed in  US District Court of Iowa “Berthel Fisher had actual knowledge of misrepresentations and omission in the 2008 [private-placement memorandum] and failed to investigate red flags that pointed to other misrepresentations and omissions.”

Brokerage firms have a fiduciary duty to conduct a reasonable investigation into the investment, including the sponsor and manager. Additionally, brokerage firms must perform adequate due diligence to ensure that the investment has a reasonable likelihood of success. When brokerage firms fail to uphold their fiduciary duty or misrepresent an investment they may be liable for investment losses.

According to Investment News, Berthel Fiser, not only helped TNP raise nearly $26 million, they also acted as the deal’s underwriter. This means that other brokerage firms had to go through Berthel Fisher in order to sell the TNP Notes.

The TNP 2008 Participating Notes Program, along with  TNP 12% Notes Program  went into default. Multiple offerings sponsored by Thompson National Properties, including the both Notes Programs and TNP Strategic Real Estate Trust, have been under investigation by securities regulators.

The White Law Group is investigating brokerage firms, including Berthel Fisher & Co. Financial Services, on behalf of investors seeking to recover investment losses that resulted from a Thompson National Properties offering. 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 http://www.whitesecuritieslaw.com.

More Bad News for Thompson National Properties

According to reports, a former chief financial officer of Thompson National Properties was recently suspended for five months from the securities industry for failing to conduct adequate and independent due diligence into an array of Thompson’s real estate deals.

According to a FINRA Order, FINRA recently suspended Wendy J. Worcester, who was also co-chief compliance officer of the broker-dealer controlled by Mr. Thompson, TNP Securities LLC, from working with a Finra broker-dealer and fined her $15,000.

The Order alleges that Ms. Worcester “failed to conduct adequate and independent” due diligence regarding three separate private-placement offerings sponsored by Thompson National Properties LLC.  FINRA further alleged, according to the reports, that she “thus compromised the independence” of the broker-dealer, TNP Securities.

The Order further states that in 2009 Thompson National Properties was allegedly hurting for cash, posting losses that year of almost $25.8 million, and that this resulted in negative net equity of $13.6 million for the firm, which was in the middle of launching its REIT, the TNP Strategic Retail Trust Inc.  FINRA further alleges that two of the Thompson private placements, both note programs, paid old investors with new investor money or money from elsewhere in the operation.

The Order specifically states that “[d]uring 2009 and 2010, the [TNP 12% Notes Program LLC and TNP Participating Notes Program LLC] were unable to pay certain investor distributions from operating cash flow,” and that, instead, they “relied on new investor proceeds or transfers of cash from [Thompson National Properties] or its affiliates in order to make distributions to investors.”

Upon information and belief, both these note programs are now in default.

According to the Finra order, Ms. Worcester consented to it without admitting or denying its allegations.  Finra is also apparently conducting an investigation into Mr. Thompson and TNP Securities for failing to hand over a log of more than 300,000 e-mails to the firm’s attorney. Earlier this year, the REIT suspended the payment of dividends to investors.

The White Law Group has been monitoring this situation for some time.  Based on what is now known about the Thompson National Properties offerings – TNP Strategic Retail Trust, TNP 12% Notes Program, and TNP Participating Notes Program – it appears that the brokerage firms that sold these investments may be liable for any losses due to their failure to perform adequate due diligence on these offerings.

Brokerage firms have a fiduciary duty to their clients to perform adequate due diligence on any offering before offering it for sale to their clients.  For more information on The White Law Group’s investigation into potential FINRA arbitration claims involving these products, visit http://www.whitesecuritieslaw.com/2013/03/20/tnp-strategic-retail-trust-cuts-dividend/ or http://seekingalpha.com/instablog/1047207-d-daxton-white/1662781-information-for-tnp-strategic-retail-trust-and-thompson-national-properties-investors

For a free consultation with a securities attorney regarding your TNP litigation options, please call The White Law Group’s Chicago office at 312/238-9650.

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

Update on Thompson National Properties Investigation

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.com.