Many investors have incurred losses investing in Private Placements offered by TNP Securities, LLC. The former Chief Financial Officer of Thompson National Properties was suspended from the securities industry for failing to conduct adequate due diligence on many of the offerings issued by the company.
It also appears that Thompson National Properties used new investor funds in order to make distribution payments to those that invested in the TNP 12% Notes Program.
Under FINRA and regulations, Broker-Dealers that sold investors TNP Notes may be held liable for investor losses if they failed to conduct adequate due diligence on these products.
According to The Securities Law Firm of Menzer & Hill, P.A., it's unfortunate, but not uncommon for Broker-Dealers to rubber stamp Private Placement offerings without doing their proper due diligence at the expense of clients losing millions of dollars.
With that said, investors that purchased 12% TNP Notes may have recourse to recoup their funds by filing for a FINRA arbitration.