TNP Strategic Retail Trust’s board (“TNP SRT”) has accused Tony Thompson, TNP’s founder and TNP SRT’s co-Chief Executive Officer, of issuing an inaccurate, unapproved letter to shareholders, in a disclosure filed with the Securities and Exchange Commission on April 8, 2013.
In the same disclosure, TNP SRT’s board accused its advisory firm, TNP Strategic Retail Advisor (“TNP Advisor”), which is controlled by Tony Thompson, of misleading the TNP SRT board and engaging in dealings with third parties that were not in TNP SRT’s best interest. As a result, TNP SRT’s board indicated it is entitled to terminate its advisor for cause and is making efforts to do so.
TNP SRT’s board also disclosed it is attempting to appoint a new CEO and Board Chairman “to ensure the prudent management of the company.” TNP’s current co-CEO and Board Chairman is Tony Thompson.
The TNP SRT regulatory filing was only signed by its three independent directors.
The regulatory filing reviewed by securities attorneys Jason Kane and Joe Peiffer identifies a number of payments by TNP SRT to its investment advisor, Tony Thompson-controlled TNP Advisor. Attorneys Rosca and Peiffer also determined that TNP SRT paid over $1.2 million to a lender to settle two “events of default” related to TNP SRT’s “inability to make mandatory principal payments” to the lender and fund reserves required by the loan documents.
“The TNP SRT independent directors’ accusations of misconduct against Tony Thompson and the TNP advisor he controls are troubling,” said attorney Jason Kane. “Directors and officers are fiduciaries of a company and must abide by high standards of care when they act on behalf of the company,” Rosca said. “The TNP SRT board’s new disclosures paint a worrisome picture of TNP SRT’s financials,” said attorney Joe Peiffer.
Attorneys Rosca and Peiffer have been investigating the sales practices surrounding a number of TNP-sponsored real estate investment products that may have been unsuitable for many TNP investors. Investors who were sold TNP-sponsored real estate investment trusts are encouraged to contact attorneys Jason Kane or Joe Peiffer toll free, at (216) 589-9280 for a free evaluation of their matter. For more information, visit www.tnpinvestors.com .