Tony Thompson’s TNP-sponsored real estate investment programs TNP 12%, TNP 2008 Participating Notes, and TNP Strategic Retail Trust have been plagued by cash problems, according to media reports. Regulatory records reviewed by securities attorneys Jason Kane and Joe Peiffer show that Mr. Thompson and a securities broker-dealer firm he controls, TNP Securities, have been recently put under investigation by the Financial Industry Regulatory Authority (FINRA). The reason for the investigation is yet unclear. TNP Securities acted as a nationwide promoter of the TNP-sponsored investment programs.
Investigation by securities lawyers Rosca and Peiffer indicates that three TNP-sponsored investment programs, including TNP 12% Notes Program, defaulted on their interest payments. As of late 2012, documents reviewed by attorneys Rosca and Peiffer indicate that TNP’s liabilities exceeded its assets and the company had a negative working capital position. Attorneys Rosca and Peiffer learned that TNP Strategic Retail Trust (“TNP SRT”) recently defaulted on a loan made by a third party to an affiliated entity, and guaranteed by TNP.
Attorneys Peiffer and Rosca have identified several securities broker-dealer firms nationwide that recommended and sold to their customers investments in the TNP real estate programs. Attorneys Rosca and Peiffer are investigating whether or not those securities broker-dealer firms’ investment recommendations to their customers were suitable, given the investors’ risk profiles, and whether the TNP investments were sold through misrepresentations or omissions of material fact.
“Securities broker-dealer firms must only recommend suitable investments to their customers,” said attorney Peiffer. “A broker-dealer’s suitability-related duties are well established. Before recommending an investment to a customer, the broker-dealer has a duty to evaluate its customer’s risk tolerance and determine that such investment is appropriate given the investor’s profile,” said Peiffer.
“The TNP-sponsored investment programs we have reviewed were illiquid, risky, and suitable only for a small category of investors,” said attorney Rosca. “We will hold liable those securities broker-dealer firms that disregarded their duties to recommend suitable investments to their customers,” said Rosca.
Attorneys Rosca and Peiffer are preparing to take action on behalf of TNP investors against those broker-dealer firms that sold TNP-sponsored real estate investments in violation of their duties. Investors who purchased TNP-sponsored products such as TNP 12% Notes Program, TNP 2008 Participating Notes, and TNP Strategic Retail Trust are encouraged to contact attorneys Rosca or Peiffer for a free consultation, toll free at (216) 589-9280.