Customers of Wendy J. Worchester, TNP Securities Could Recover Losses

by InvestorLawyers on June 25, 2013

in Arbitration,FINRA,Private Placements,REIT

Securities fraud attorneys are currently investigating claims on behalf of the customers of Wendy J. Worchester and TNP Securities LLC. According to a recent article in InvestmentNews, Tony Thompson’s non-traded REIT, or real estate investment trust, was suspended by the Financial Industry Regulatory Authority for five months because of a failure to conduct independent and adequate due diligence.

Customers of Wendy J. Worchester, TNP Securities Could Recover Losses

Worchester was the co-chief compliance officer of TNP Securities LLC, a broker-dealer under Thompson’s control. Worchester and TNP Securities were suspended from working with a FINRA affiliated broker-dealer and Worchester was fined $15,000. According to FINRA, Worchester’s failure in due diligence was regarding three TNP Securities-sponsored private placement offerings.

According to stock fraud lawyers, TNP suffered almost $25.8 million in losses in 2009, resulting in negative $13.6 million net equity while launching the TNP Strategic Retail Trust Inc., a REIT. Allegedly, both of the note programs and two of the private placements offered by Thompson used new investor money to pay old investors. Both note programs are now in default.

According to FINRA, Worchester did not “examine and reasonably evaluate historical and current financial statements of the issuer (Thompson National Properties) and its affiliates to identify and reasonably evaluate negative trends indicated by the financial statements and the requirements for significant capital infusions, increased revenues from operations or decreased expenses.” Securities fraud attorneys say that in some cases of inadequate due diligence, firms and individuals can be held responsible for investor losses.

Reportedly, Worchester held a number of positions at TNP. From May 2009 until October 2010 she held a compliance position and she was the TNP Strategic Retail Trust CFO from September 2008 to July 2010.

If you suffered significant losses in TNP private placements, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 for a no-cost, confidential consultation.

Previous post:

Next post: