Securities fraud attorneys are investigating potential claims on behalf of investors who suffered losses in the TNP Strategic Retail Trust. Declared effective on August 7, 2009 by the SEC, TNP Strategic Retail Trust is a non-traded REIT that, according to REIT Wrecks, raised only $21 million through the end of Q3 2010.
Reportedly, the money raised by the investment was used to acquire the 94,574 sq ft. Moreno Valley Marketplace in Rancho Belago, California, and the 170,000 sq ft. Waianae Mall, which sits on the North Shore of Oahu. Additionally, TNP Strategic Retail Trust reportedly suffered a net loss and had a negative operating cash flow throughout the first nine months of 2010. Given this information, stock fraud lawyers question whether TNP Strategic Retail Trust will be able to move forward.
Securities fraud attorneys are investigating the possibility that brokerage firms may be held liable for the recommendation of this and other TNP investments. Financial Industry Regulatory Authority rules have established that brokers and firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance. Furthermore, brokerage firms must, before approving an investment’s sale to a customer, conduct a reasonable investigation of the securities and issuer. The firms that recommended this investment to clients may have done so improperly, based on information now available about the investment.
REIT investments like the TNP Strategic Retail Trust typically offer commissions between 7-10 percent, which is significantly higher than traditional investments like mutual funds and stocks. This higher commission can explain why brokerage firms are motivated to recommend these investments despite their possible unsuitability.
If you invested in the TNP Strategic Retail Trust and suffered significant losses as a result, 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.