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FORECLOSURE DEFENSE
1031 Exchange Fraud

1031 Exchange Fraud

 

What happens if you lose your 1031 Exchange funds?

What happens if your 1031 Exchange funds are stolen or delayed?

Do you doubt that your 1031 Exchange funds could be stolen?

Think again. Consider this from Examiner.com:

       A 1031 exchange is a tax deferment technique based on Section 1031 of the IRS code and is sometimes called a Starker exchange in reference        to a court case (Starker v. U.S.) that allowed future real property exchanges to be treated as a simultaneous exchange, which facilitates some            legal tax avoidance. Money from a sale is escrowed with a "qualified intermediary" until a second, exchange property is located. Qualified                    intermediaries are not regulated in most states, and neither is the 1031 exchange industry in general.

 

Examiner.com, 1031 Exchange Fraud Costs Homeowners Hundreds of Millions http://www.examiner.com/article/1031-exchange-fraud-costs-homeowners-hundreds-of-millions

Consider Summit Accommodators of Oregon. They “lost” $14 Million in investors’ funds including two clients of mine in Austin. Meanwhile, they built palatial mansions in Oregon. How could this happen? 1031 Exchanges are not regulated so the exchange company is only as good as their reputations. In the case of Summit, it was too late when my clients negotiated their exchanges.

Summit and other 1031 exchange companies have operated like Ponzi schemes. Paying off older investors with newer ones. You should use only trusted and reliable 1031 exchange companies or banks. If bad 1031 exchange companies are effectively run like Ponzi schemes, how can you ever get your money back? In the Summit case, virtually all of the 1031 exchange funds were returned to their owners because 1031 exchange companies have to park the money somewhere and when a 1031 Exchange company goes bad, they do so using a complicit bank. It doesn't mean you WILL get your money back but  you aren't going to get it back just sitting there fretting about it.   You can consult with my office for free to determine if you can recover your lost 1031 exchange funds.

Evin G. Dugas - Attorney at Law 512.261.0044 Evin@housedefects.com
2303 RR 620 South,   Suite 135 PMB 361,   Austin, Texas 78734
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