Rumor, gossip, innuendo, and good ole fashion trash talk are all forms of “unsubstantiated” communications. They can be fun and entertaining if you are a Hollywood screenwriter or a television soap opera pundit. But what happens when all of these “unsubstantiated” forms of communication come crashing down on your business? That is the question I would love to ask anyone at 1031 Advance in San Jose.
In my initial post on this company, I outlined how 1031 Advance had closed their office doors, shut down their web site, cut off the phones, and worst of all: failed to fund on multiple deals. All of these actions were taken without advance (pardon the pun) warning to their customers or industry. And with the recent LasVegas fiasco fresh in everyone’s minds, 1031 Advance’s actions began to take on the smell of a month old carton of “take out”. . . nasty indeed.
My original source of information is playing things very close to the vest; he/she remains mum on details except to say that “It looks like a MESS.”
I recently received new information from a legal source of mine on the East Coast who claims to be privy to much of the details involved in the 1031 Advance situation. Call it rumor, innuendo, gossip, or good ole fashion trash talk–here is what was related to me:
1. 1031 Advance is one of a number of companies owned by an umbrella firm considered to be very powerful; this firm is owned by an individual who has a reputation as a very very tough man–nobody to mess with at any level.
2. An unnamed trade association publication that covers the exchange industry claims that “the membership of a group of Qualified intermediaries (1031 Advance of California being one of this group) was temporarily suspended. The suspensions were handed down due to “substantial evidence that transactions had not been funded in an industry acceptable time frame.”
3. FEA President Pollard stated that he was aware of “20 complaints from exchanger clients in regards to 1031 Advance.” My source goes on to say that Pollard believes the problems came about “due to a desire to maximize returns on exchange funds.” To me that sounds like a gooey candy-coated method of saying somebody got ripped off. . . but that’s just my opinion.
4. In response to these allegations, 1031 Advance claimed that “allegations of misappropriations are lies.” The final comment was the company’s blanket statement: “The company is fully operational and has honored all commitments to customers.”
There you have it sports fans. . . this situation sounds as intriguing as “Who shot J.R.” For you young’ns out there who have no idea who JR was. . . let’s just say he had a reputation as a very very tough man–nobody to mess with at any level.