Thompson grounded

JAN 20, 2013
Amid dealing with defaults on note programs and commercial real estate, the highflying real estate mogul Tony Thompson has been grounded. Mr. Thompson, through a company he controls, TT Aviation LLC, sold his private jet last May to General Electric Capital Corp., which often serves as a lender in airplane financing. According to a listing on Jet Net.com, he bought the new jet, a Hawker 400XP, in 2008. The listing shows two liens on the aircraft totaling $30,462 during the time that Mr. Thompson owned it. One was filed in January 2012, before he sold the jet. The other was filed May 10, the same day of the sale. Details of the sale weren't available. “That airplane is probably worth $2.1 million to $2.2 million,” said Wes Ray, executive sales director with Avpro Inc., an aircraft brokerage firm. Private jets such as the Hawker 400XP are extremely expensive to maintain. “The annual budget, including flying, is between $200,000 to $300,000,” Mr. Ray said. When asked if the plane had been repossessed, Mr. Thompson last week wrote in an e-mail that such a characterization of the transaction was “bad info.” He didn't respond to a follow-up asking why he sold the plane. Mr. Thompson has been a big earner known for a lavish lifestyle. In 2006, he earned $4.8 million as chairman of NNN Realty Advisors, of which he owned or controlled 26% of the common stock, according to a filing with the Securities and Exchange Commission. It isn't clear how much Mr. Thompson made in 2007 when he merged that business, a packager of real estate securities known as tenant-in-common exchanges, with Grubb & Ellis Co., which filed for bankruptcy court protection last year. — Bruce Kelly

Latest News

Edward Jones facing more race bias claims in new lawsuit
Edward Jones facing more race bias claims in new lawsuit

A private partnership, Edward Jones is a giant in the retail brokerage industry with more than 20,000 financial advisors.

Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team
Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team

Meanwhile, Raymond James and Tritonpoint Partners separately welcomed father-son teams, including a breakaway from UBS in Missouri.

SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures
SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures

Paul Atkins has asked staff to solicit public comment on novel ETFs, pausing the clock on as many as 24 filings linked to the booming event contracts market.

Private capital's $1 trillion bet on the American retirement account
Private capital's $1 trillion bet on the American retirement account

From 401(k)s to retail funds, Deloitte sees private equity and credit crossing into mainstream investing on two fronts at once.

Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May
Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May

Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management