SANTA ANA, CA-The Securities and Exchange Commission has closed the books on an investigation into the filing practices of Triple Net Properties that began three years and nine months ago and cost Triple Net “north of $5 million,” according to Tony Thompson, founder of the the Santa Ana-based tenant-in-common sponsor. Thompson and Grubb & Ellis Co., which merged with Triple Net last year, both issued statements today expressing their relief that the investigation is over and that the SEC determined that no enforcement action was necessary.

Thompson, who left his post as chairman of Grubb & Ellis last year and has since founded Thompson National Properties LLC, tells that the investigation began when the SEC, in the course of routine compliance audits, found that Triple Net had not filed some required documents on time for some of its funds or had not included all required information in those filings during the period 2002 to 2004. “They found just enough little things that concerned them that they went from a compliance audit to an enforcement investigation,” Thompson explains.

Thompson says the $5 million in hard costs for Triple Net included more than $1 million for copying paper documents alone, plus millions more for attorneys’ fees, accounting fees and other expenses. The inquiry also cost Triple Net in terms of time that company employees spent gathering documents and performing other tasks associated with the investigation.

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