In our May 31, 2007 post “No Wonder the 1031 Advance Fiasco Is Littered with “Dead Financial” Bodies!” we outlined the incredibly uninformed musings of two California politicians and their reactions to the disaster at hand. As promised, this is a follow up post to investigate whether any further actions, reactions, statements, or press releases have surfaced–the following is LESS than encouraging!
According to Senator Mike Machado’s Biography on his web site: “Senator Machado currently chairs the Senate Committee on Revenue and Taxation.” Upon a new inspection of Machado’s web site here is a list of his current triumphs and latest accomplishments:
1. “. . . During the last legislative session, he was instrumental in crafting legislation designed to stop the unfair practice of “predatory lending.”
2. “. . . serves on the Senate Committees on Budget and Fiscal Review. . . “
The original source of comments by politicians and their vows to “look into” (a less than active form of investigation) the 1031 Exchange disaster came from the San Jose Mercury news story on May 16, 2007 titled: “Politicians probing collapse of 1031 Exchange Firm.“
Here are the rest of our paid politician’s statements and “actions” regarding this subject:
United States Representative 14th District of California Anna Eshoo (D-Palo Alto) was quoted in the Mercury news piece that she “promised to contact the US Attorney in Virginia investigating the 1031 Tax Group.” Ms Eshoo’s web site, on the “Issues and Legislation” page, expounds upon her accomplishments and “platform.” There is NOT a single mention about 1031 Exchange laws, regulations, or the 1031 Exchange Group’s disaster. Nothing shows up regarding her “contact” with the US Attorney in Virginia investigating the 1031 Tax Group.
Senator Joe Simitian 11th District California (D-Palo Alto) has a nice “About” page. Unfortunately just like his counterpart Ms. Eshoo, Simitian’s web site makes no mention of the 1031 Exchange disaster. In the Mercury article, Mr. Simitian stated that he “promised to investigate the matter. . . ” Again there is no mention of any “investigation” into the 1031 Exchange (Advance) or affiliated companies and their misdeeds.
Finally Zoe Lofgren 16th District of California (San Jose-Silicon Valley) has a beautiful home page. This front page outlines her latest good deeds and what she currently is working on for us. Subjects like Vietnamese human rights, Stem Cell Research, and the Spyware Bill are outlined. NO mention of the 1031 Exchange (Advance) or any of it’s affiliates is mentioned. It was Lofgren who stated that she would “raise the issue with the appropriate committees in congress.” Yet here we are over a month later and nothing.
It seems to me that unless people begin to write and deluge their representatives with phone calls about the travesty taking place right now, no laws will be introduced to both regulate the 1031 Exchange landscape and protect the consumers within this space!