Recently, the Financial Industry Regulatory Authority, Inc. Department of Enforcement (“FINRA Enforcement”) stated that it began investigating broker Tony Thompson and his broker-dealer TNP Securities LLC (“TNP”), for failure to comply with FINRA demands for documents and information. In 2008, Mr. Thompson, a prominent real estate investor and broker, started TNP. He is also the Chief Executive Officer of Thompson National Properties, a real estate investment company specializing in leased single or multi-tenant investment opportunities, and Triple Net Properties LLC, a well-known real estate investment company which promoted real estate investments known as tenant-in-common exchanges that were sold through independent broker dealers during the real estate bubble. According to FINRA’s BrokerCheck Report for TNP, TNP and Mr. Thompson failed “to produce a privilege log for approximately 316,000 attorney-client privilege e-mails.” Failure to produce such documents to FINRA is a violation of various industry and FINRA rules. Specifically, FINRA Rules 8210 and 2010 require broker-dealers, like TNP, to turn over documents and information to regulators when requested. Reportedly, the FINRA document request that TNP allegedly failed to comply with regarded TNP and Mr. Thompson’s efforts in selling a non-traded real estate investment trust, specifically the $272 million TNP Strategic Retail Trust Inc. Mr. Thompson made the following statement to the media: “[t]he biggest challenge [is logging] 316,000 attorney-privileged e-mails, which would take one person potentially a few years.” Further, Mr. Thompson is also reportedly facing financial issues as he sold $21.5 million worth of private notes for Thompson National Properties LLC, from 2008 to 2009, which defaulted last year.
Lax & Neville LLP effectively assists investors, on both a regional and national level, that may have suffered losses as a result of their broker and broker dealer’s sales practice abuses. Furthermore, Lax & Neville LLP has also nationally represented small broker-dealers, financial services professionals and securities industry companies in regulatory matters, including regulatory enforcement proceedings, and securities-related and commercial litigation. Please contact our team of attorneys for a consultation at (212) 696-1999.