Sunday, May 20, 2007
1031 Tax Group LLC Files for Bankruptcy
1031 Tax Group LLC, a privately held consolidated group of qualified intermediaries for deferred like-kind property exchanges, has filed for chapter 11 reorganization in U.S. Bankruptcy Court for the Southern District of New York (Case No. 07-11448-alg). From the press release:
1031 TG is a "roll-up" of several qualified intermediaries created to service real property exchanges under Section 1031 of the Internal Revenue Code. The Debtors are: The 1031 Tax Group, LLC; 1031 Advance 132 LLC; 1031 Advance, Inc.; 1031 TG Oak Harbor LLC; Atlantic Exchange Company, Inc.; Atlantic Exchange Company LLC; Exchange Management, LLC; Investment Exchange Group, LLC; National Exchange Accommodators, LLC; National Exchange Services QI, Ltd.; National Intermediary, Ltd.; NRC 1031, LLC; Real Estate Exchange Services, Inc.; Rutherford Investment LLC; Security 1031 Services, LLC; and Shamrock Holdings Group, LLC.
(Hat Tip: Mark Cochran.)
Yeah, they have some of my money too. The real question is .. With IXG there is a bond.. will Okun be tried as a criminal so the bond will pay? Will Colorado Capital Bank keep the frozen assets and give them back to us..or will some Judge in New York give Okun the last 20 million and screw us too?
Posted by: Randy Whidden | May 23, 2007 7:41:33 PM
Its seem like you can't trust anyone nowadays, this 1031 exchange group has got all my life savings with them. and i don't whats gonna happen next, i am having chest pains since i heard the news, i guess my life is a mesirable mess, i hope things can work out. if anyone understand the pain and frustration i am going through, please write me a e-mail, and if there is a way out or how the money can be recovered, please lend a hand. i am going insane. it realy hurts. this is all hard earned money, w don't sell drugs fro god sake.
Posted by: manny | May 21, 2007 3:21:41 PM
I have been predicting this for years. The intermediary business remians totally unregulated and is like the wild west. For years I have been calling for some very simple regulation of the business. First, all funds should be kept seperate, not necessarily in seperate accounts, but each exhnagers funds accounted for and identified. These funds should not be allowed to be dispersed without the signatyre of both the intermediary and the exchanger. Second intermediaries should be required to be either a licensed attorney, CPA, Title Insurance company or bank and have education and CE requirements attached. Third all intermediaries should be required to disclose what, if any interest is being paid on escrowed funds and what, if any the split of the iterest will be. I handled exchanges for many years as an attorney and repeatedly warned people about using the cheapest service they could find. When going with budget intermediaries, clients usually touted that they were bonded. Well, people I have news, Okun is bonded, but the bond does not pay unless criminal activity is proven. This Okun case is an absolute mess for everyone but the litigation lawyers, who are drooling over the protracted litigation and big fees they will collect. I predict this matter drags out for years and Okun escapes with little or no criminal penalty and that the banks escape altogether. The bankers and Okun shoulod be tried for Fraud and RICO and given the death penalty. They have robbed many innocent victims of life savings by a carefully planned scheme to defraud. This is largely the fualt of the IRS and Congress for allowing this industry to fly under the radar for all these years. I've been screaming about this for years, but was laughed at. It's not so funny now, is it?
Thomas C. Legg, JD
Posted by: Tom Legg | Jun 7, 2007 1:55:44 PM