Securities Arbitration Investigations Continue as FINRA Files Formal Complaint Against Thompson National Properties

Securities fraud attorneys continue to investigate claims on behalf of investors who suffered significant losses in Thompson National Properties (TNP) promissory note investments. Specifically, investors may bave viable claims regarding three note programs sold by TNP from 2008 to 2012 that, according to a Financial Industry Regulatory Authority (FINRA) complaint dated July 30, 2013, allegedly were used in defrauding and deceiving investors. The complaint names Tony Thompson, Thompson National Properties LLC and TNP Securities LLC and is the first formal action against Thompson by FINRA.

According to stock fraud lawyers, $50 million in TNP-sponsored high-yield promissory notes were sold to investors, claiming guaranteed principal and interest. A summary of the allegations b7y FINRA in Mr. Thompson and TNP Securities’ BrokerCheck profile states that they “engaged in transactions, practices or courses of business which operated as a fraud or deceit upon the purchaser.” Furthermore, FINRA’s allegations against TNP Securities and Mr. Thompson include the use of deceptive, manipulative or other fraudulent devices, which allege4dly puts them in violation of FINRA Rule 2020 and the Exchange Act of 1934.

Specifically, the complaint discusses the TNP 2008 Participating Notes Program LLC, the TNP Profit Participation Program LLC and the TNP 12% Notes Program LLC.

“During the offering periods for 12% Notes and 2008 Participating Notes, losses in 2009 of [$25.6 million] took the company’s equity to [-$13.6 million],” but none of the PPMs or supplements for the three offerings “disclosed the increasing likelihood that [TNP] would not be able to meet the proffered guarantees of principal and interest,” the FINRA complaint reads. The FINRA complaint elaborates as follows: “Potential investors, however, saw only the PPM balance sheets that reflected total equity of either $8.5 million or $5 million, respectively.

TNP investors have suffered recently, since two of the note programs ceased making payments and one entered into default.

If you suffered significant losses in the TNP 2008 Participating Notes Program LLC, the TNP Profit Participation Program LLC or the TNP 12% Notes Program LLC, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.