Broker-dealer Tony Thompson of Thompson National Properties LLC (TNP) temporarily suspended private placement interest payments, leaving hundreds of investors out in the cold until at least 2013.
The affected private placement, the TNP 12 Percent Notes Program LLC, previously raised $21.5 million from investors in 2008 and 2009, though in recent years had fallen prey to increased overhead costs and stagnant revenues.
Expected to mature on June 10, 2013, TNP administrators expect investors will recoup their interest and principal in one year's time, yet industry analysts including Independent Financial Group CEO Joe Miller were surprised by the suspension, indicating that his own firm has sold over $500,000 of the TNP notes and his investors have already recovered nearly 35% of their initial investments.
Miller additionally indicated that TNP has been "a little aggressive" in regards to its assessment of the real estate recovery, which suggests that the suspension may not be completely out of the blue.
Because note programs such as TNP's are often associated with real estate, an overly bullish evaluation of the fragile market may result in an increased or unsustainable rate of spending.
With 22 independent broker-dealers selling the TNP notes, with a required minimum investment of $50,000 and commission of 7%, the implication of the TNP suspension is both far-reaching and significant.
If you invested in Thompson National Properties' promissory notes or a broker or firm's recommendation to invest in the TNP promissory notes has proven harmful to your investment or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for a consultation.