A Third Victim of the 1031 Tax Group Speaks Out

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Since the beginning of my series on the 1031 Tax Group, 1031 Advance of San Jose, readers have commented with in-depth information. Stories of total financial loss, confusion as to their futures, and disbelief over the lack of regulation within the 1031 industry abound. All of the victims have a story to tell. I invite one and all victims of this mess to voice their stories. Let other people know what has happened to you! Tell the world so that others may be saved the pain and suffering you are going through currently.

On a personal note I want to thank and acknowledge “Darlin” for her contributions. She has been a reader throughout and she has contributed powerful information for others to heed. As a newly minted member of the “Train Wreck Victims”, Darlin tells her painful saga in the comment below. Please take this story seriously and make your financial decisions carefully!

1.Thank you for continuing to print articles re Ed Okun bilking millions from innocent bystanders. Allow me to correct you on a point – we TWV’s (Train Wreck Victims) did not INVEST our life savings with him. Our monies were to be held ‘in trust’; not held in business operating accounts for him to ‘borrow’ from for his various business/pleasure ventures.And now we’re told we can’t touch the assets he used OUR money to invest in those? The asset-based loan investors will evidently be using all of Okun’s assets to accommodate a loan package to ‘fully’ repay us TWVs. What they fail to report is we will NOT be repaid in full because the loan package allows for full restitution AFTER Chapter 11 management costs and expenses have been paid. While they did allow for $5 million to go toward those expenses, over $2 million have already been incurred as of their 6-30-07 Operating Statement.I had over $482,000 on deposit with 1031 Advance, Inc. of San Jose, CA when Okun, et al filed bankruptcy. Not including the probable tax consequences from the IRS, I am already out of pocket several thousand dollars on top of that. I retired early last year because I had everything ’set up’ and could. Now I’m facing the strong possiblity of having to go back to work at the age of 54, which may not sound so bad, but having been self-employed for almost 25 years it’s going to be tough going into the job market. It’s too late for me to rebuild a business again.In the meantime, Okun will have his luxury homes and toys to enjoy. Someone else may hold the titles, but he’ll still be running amok out there on our money – for many of us, our life’s savings. The weasle doesn’t even have the courtesy to show his face in court, but then he obviously doesn’t know the meaning of the word!
Comment by Darlin’ — August 7, 2007 @ 6:14 pm | Edit This

If you have been a victim of this misfortune, please tell us your story. Contact Dean Guadagni at ddguad@aol.com

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6 thoughts on “A Third Victim of the 1031 Tax Group Speaks Out

  1. My husband and I are also victims of this swindler. He has over $110,000 of our hard-earned money, which might seem small compared to many others who have lost more. But it is a lot to us. Darlin is right in saying that we will not receive all of our money back. Legal fees will take a chunk of it. And as the slow wheels of “justice” continue to turn, the tab continues to grow. Unfortunately in the end, Okun will continue to prosper at our expense and enjoy a life of luxury, while many lives of innocent people have been damaged significantly. Hopefully, the US Postal Inspection Service will uncover enough evidence in their criminal investigation of Okun to criminally prosecute him. That would be some measure of justice.

  2. Monica,

    First let me say how sorry I am for your losses. It means a lot to many people, who have suffered in the same way,to hear your story. Best wishes to a full recovery of funds.

    As for prosecution, my opinion is that Mr Okun will plea bargain out of any type of charges. Not that he is in anyway associated with the heinous crimes that Atlanta Falcon’s ex QB Michael Vick committed, he is most likely going to plea bargain like Vick has done. Vick pleaded guilty to dog fighting in order to have the Fed’s charge of gambling go away. I am guessing that this will be the case with Okun in his fight with the Postal Inspection Service.

    Dean

  3. Okun was selling TIC shares. Where has that money gone? I’m wondering if there is anyone out there that has invested in a TIC or into Investment Properties of America (IPofA). If victims’ money was used for Okun’s toys and Real Estate that he was then selling as TICs, then where is the TIC money?

  4. Doing R,

    I am sorry for your loss if you suffered at the hands of 1031 Tax Group or it’s affiliates owned by Okun. I am unable to answer your question. Let’s open it up to the blogishere and hope we receive news.

    Thanks for commenting please come back.

    Dean

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