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.