1031 Advance: Setting the Record Straight ? Only Time Will Tell

The following is a comment I received in regards to my articles on 1031 Advance in San Jose, California. The comment was too long for wordpress to display; consequently I felt it too important not to provide it to those in need. I want to thank Amy Greenfield, Esq. of Van Prooyen Greenfield LLP, for responding to my pleas for help in this situation. I am in hopes that this information will help those people who have been frantic for answers.

  1. “Huron Consulting Group | amahnken@huronconsultinggroup.com | IP: 206.132.93.5Contact:
    For Media:
    Amy Greenfield, Esq.
    Van Prooyen Greenfield LLP
    (212) 289-6733
    agreenfield@vpgllp.com For Customers:(888) 804-1031FOR IMMEDIATE RELEASE THE 1031 TAX GROUP FILES FOR REORGANIZATION Chapter 11 initiated to aid return of funds to customers;
    James M. Lukenda named Chief Restructuring OfficerMay 14, 2007, New York — The 1031 Tax Group, LLC (“1031 TG”), a privately held consolidated group of qualified intermediaries for deferred like kind property exchanges, filed today for chapter 11 reorganization in U.S. Bankruptcy Court for the Southern District of New York (case number 07-11448-alg) in order to provide it with the necessary time to reorganize its affairs.In addition, 1031 TG announced today that it has named James M. Lukenda of Huron Consulting Group (“Huron”) as Chief Restructuring Officer. The Huron team led by Mr. Lukenda replaces five 1031 TG executives who recently left the company.“Huron is moving forward with the full support of The 1031 Tax Group to address the companies’ business and liquidity issues in an orderly way,” stated Mr. Lukenda.1031 TG cited liquidity issues in the decision to file, including the actions taken by several financial institutions in blocking access to 1031 TG’s funds.The Debtors estimate on a balance sheet basis that their assets exceed their obligations to customers and others. Prior to the filing, the owner of 1031 TG, Edward H. Okun, personally signed a guaranty for repayment of notes owed to the Debtors by entities controlled by Mr. Okun. Mr. Okun has agreed in principal to collateralize his personal guarantee with a collateral package in order to facilitate repayment of creditors’ claims. The Debtors anticipate that the proposed collateral package will be agreed to and documented within a short period of time.

    1031 TG is represented by Paul Traub and Norman N. Kinel, co-chairs of Dreier LLP’s Bankruptcy & Corporate Reorganization Department.

    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.

    Background on The 1031 Tax Group, LLC
    The 1031 Tax Group, LLC is a consolidated group of qualified intermediaries doing business as 1031 Advance, Atlantic Exchange Company, Investment Exchange Group (IXG), National Exchange Services, Real Estate Exchange Services (REES) and Security 1031 Services (SOS1031).

    Background on Huron Consulting Group
    Huron Consulting Group helps clients effectively address complex challenges that arise in litigation, disputes, investigations, regulatory compliance, procurement, financial distress, and other sources of significant conflict or change. The Company also helps clients deliver superior customer and capital market performance through integrated strategic, operational, and organizational change. Huron provides services to a wide variety of both financially sound and distressed organizations, including Fortune 500 companies, medium-sized businesses, leading academic institutions, healthcare organizations, and the law firms that represent these various organizations. For more information, visit www.huronconsultinggroup.com.

    Background on Dreier LLP
    Dreier LLP was founded in 1996 by Marc Dreier as a more responsive and innovative alternative to traditional “large-firm” lawyering. Dreier LLP represents a wide range of institutional, entrepreneurial and individual clients in diverse sectors of financial, industrial and service-oriented markets. The firm’s principal practices are commercial litigation, real estate, bankruptcy and corporate reorganization, employment law, corporate and securities, entertainment and intellectual property. Dreier LLP’s Los Angeles affiliate, Dreier Stein & Kahan LLP, has its principal practice in entertainment and commercial litigation and corporate transactions. The firm’s affiliate Schlesinger Gannon & Lazetera LLP has an extensive practice in the area of trusts and estates law. Pitta & Dreier LLP is an affiliate which specializes in labor law, and Pitta, Bishop, Del Giorno & Dreier LLP specializes in government relations. In the 10 years since its founding, Dreier LLP, with its affiliate members, has grown to more than 150 attorneys, including 15 bankruptcy attorneys, with its principal office at 499 Park Avenue in Manhattan, and additional offices in Los Angeles; Santa Monica, California; Albany, New York; and Stamford, Connecticut. For more information, visit www.dreierllp.com.”

    # # #

    May 14, 8:13 PM — [ Edit | Delete | Unapprove | Approve | Spam ] — “1031 Advance”: Private Exchange Company Missing in Action in Silicon Valley

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