FINRA filed a complaint against broker-dealer Tony Thompson and his firm Thompson National Properties LLC ("TNP"), alleging deception and fraudulent practices related to TNP's high-yield promissory notes programs, the TNP 12 Percent Notes Program LLC, TNP 2008 Participating Notes Program LLC and TNP Profit Participation Program LLC.
According to the complaint, Thompson and firm TNP violated the Securities and Exchange Act of 1934 and FINRA rules by engaging in "transactions, practices or courses of business which operated as a fraud or deceipt upon the purchaser."
In 2012, the TNP 12 Percent Notes Program—which required a minimum investment of $50,000 and commission of 7%—became one of two TNP entities that stopped making payments to clients; the third TNP enterprise is presently in default.
The 12 Percent Notes Program had been expected to mature on June 10, 2013.
Accused in 2012 of aggressively assessing the real estate recovery, TNP began to experience losses and erosion of equity starting no later than 2009, but allegedly did not indicate these financial difficulties in offering documents or private-placement memoranda ("PPMs").
For instance, FINRA charges that in 2009, TNP failed to accurately portray a financial loss of $25.6 million, which dragged the company's equity down to -$13.6 million.
The FINRA complaint charges that instead of receiving disclosures of the true state of financial affairs, investors only saw PPMs that reflected total equity between $5 and $8.5 million.
FINRA also alleges that none of TNP's disclosures nor supplements indicated that TNP may not be able to meet guarantees or principal and interest payments.
If you have invested with Tony Thompson's Thompson National Properties LLC, its promissory notes programs or with any firm or broker whose failure to disclose or accurately represent financial circumstances where required in PPMs or other such offering documents has contributed to a situation where your interest payments have been suspended, abandoned or otherwise proven harmful to your investments, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.
News: Real estate investor Thompson defrauded investors, FINRA claims (InvestmentNews)