Noted real estate investor Tony Thompson's legal and financial problems continued to mount last week as he and his company, Thompson National Properties LLC, were sued in federal court in Colorado over the failure to make payments on a notes program that is in default.
It is the second time since last September that Mr. Thompson has been sued over the notes, which Thompson National Properties sold in 2008 and 2009 to fund the company, raising $21.5 million from 400 investors.
Darrell and Diane Elliott, investors in the TNP 12% Notes Program LLC, claim that TNP failed to make required interest payments. “Thompson National has failed to fulfill its obligation under the guarantee,” according to the complaint. TNP was obligated to repay the principal by 2011 but missed that deadline. It then stopped making interest payments in 2012 but has indicated that it intends to pay the remaining interest and principal by June.
The lawsuit was filed in U.S. District Court for the District of Colorado.
In e-mail messages to InvestmentNews, Mr. Thompson downplayed any financial difficulties at his companies. When asked to comment about growing financial problems at Thompson National Properties, Mr. Thompson wrote: “You are wrong.” The note defaults were due to “timing and in process of cure,” he wrote. In addition, Mr. Thompson wrote that TNP made payments to note holders Jan. 21.
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