April 24, 2013
Last week, TNP Strategic Retail Trust’s Board fired the Company’s auditor, due to its apparent failure to report two important events to the Securities and Exchange Commission.
In a filing with the SEC, TNP SRT’s Board disclosed that, during the quarter ended June 2012, TNP SRT’s auditor identified “significant deficiencies” in the internal controls of TNP SRT’s financial reporting. Those deficiencies were related to prepayments of acquisition fees and financing fees to the TNP SRT’s advisor prior to the closing of the transactions to which such fees related. TNP SRT’s advisor is an entity ultimately controlled by Tony Thompson, who was also TNP SRT’s CEO.
In addition, on August 12, 2012, TNP SRT’s auditor notified TNP SRT that it would no longer be able to rely upon the representations of Tony Thompson, the Company’s CEO and Chairman of the Board. It is unclear who at TNP SRT was notified of this important development.
“Reporting companies have a duty to disclose to their investors ‘reportable events,’ as the term is defined in the SEC rules and regulations,” said attorney Jason Kane. “Reportable events are often material to an investor’s decision whether or not to buy or sell securities issued by the reporting company,” said Rosca.
Securities attorneys Jason Kane and Joe Peiffer have been investigating several TNP-sponsored investments, including TNP Strategic Retail Trust, TNP 12% Notes, and TNP 2008 Participating Notes (“TNP”). Attorneys Rosca and Peiffer are preparing to take action on behalf of TNP investors, against securities broker-dealer firms that may have failed in their duties to adequately vet the TNP products prior to recommending them to their customers. TNP investors are encouraged to contact attorneys Jason Kane or Joe Peiffer for a free consultation at (216) 589-9280.