Update: 1031 Tax Group Victim Provides 82 Page Document on US Bank Settlement With Southwest 1031 Victims–”Details of the Whole Sordid Mess Are Available”

In what can only be described as heartbreaking and compelling, one of the 350 victims of the 1031 Tax Group scandal has provided new information about a eerily similar situation: Donald McGhan’s Southwest Exchange rip off.

According to Elizabeth Callanan one of the 350 victims in the ongoing 1031 Tax Group saga:

“US Bank has recently settled a class action law suit filed by the Southwest 1031 Exchangers (whose funds were stolen by owner McGhan in a fashion so like Okun’s plundering of our funds, it is eerie) with a $25 million payment (only part of the $95 million McGhan took).”

This is one of two comments that Ms Callanan announced in order to make people aware of the scandal, pitfalls, and ongoing suffering that has characterized victims in both cases. It is also information that should be considered by consumers when investigating and performing their due diligence on the 1031 Exchange process.

Included in Elizabeth’s comment is an 82 page document outlining the settlement in what she terms “easily readable english. . . not the usual and hopelessly arcane ‘legalese.”

Remember to perform your due diligence with a qualified professional attorney, CPA, or financial planner. I am not providing this information as financial advice. Consult a professional.

Elizabeth H. Callanan | TCallanet@aol.com | IP: 64.12.116.143 Dean,

  1. Thought you and your readers would be interested in learning that US Bank has settled a class action suit filed by Southwest 1031 Exchangers (whose funds were stolen by owner McGhan in a fashion so like Okun’s plundering of our funds, it is eerie) with a $25 million payment (only part of the $95 million McGhan took). The details of the whole sordid mess are available online on the attorneys’ website at: http://www.hbsb.com/class_action_docs/sorrell_docs/LetterToAllClaimants032907.pdf
    It’s 82 pages long in easily readable English (not the usual hopelessly and needlessly arcane “legalese”) and should be read by everyone of Okun’s victims. The details are sickeningly similar to our situation, but cautionary to: anyone considering a 1031, to the IRS and states considering (FINALLY)the regulation and oversight of 1031’s, and to those representing us, Okun’s victims as a possible course of action (pursuing the banks that failed through negligence or connivance to prevent the wanton abuse of our exchange funds).
    Further to the other comments in this thread re the requirement for two signatures to move exchange funds from a segregated account, I think the Southwest Exhchange lesson is clear — one of the signatures MUST be that of the exchanger!Dec 14, 11:10 PM — [ Edit | Delete | Unapprove | Approve | Spam ] — Update–Haven Exchange President Dorothy Zink Sets The Record Straight: “Our Customer’s Signature IS Required Prior To Any Release of Funds”