Reuters.com published this deansguide article July 9, 2008
What has become an all to familiar phrase in the Ed Okun 1031 Tax Group (IXG) ponzi scandal, seems to be the dreaded mantra: “The plaintiffs’ money has disappeared and recovery is unlikely.” Those were the words recorded in court hearings in Colorado this past month in regards to the embezzlement of funds through the Ed Okun held IXG exchange in Denver.
Exhibit 1: Sergio S. Alvarez v. Daniel E. McCabe
In “Sergio S. Alvarez v. Daniel E. McCabe et al, eight former clients are suing all three McCabes and Simring (Richard) for losses totaling more than $4.5 million” according to the latest from the Denver Business Journal’s Renee McGaw.
Eight clients were in the midst of their tax deferred exchanges with cash assets between $280,629-$1.9 million dollars lost when the 1031 Tax Group filed bankruptcy
Exhibit 2: Ward Enterprises LLC v. Daniel E. McCabe
The Plaintiff (Wade LLC) wired $3,300,000 in proceeds from a real estate transaction to IXG’s account held at the United Western Bank in Denver. Proceeds were for the purpose of performing a 1031 exchange
In the meantime IXG had been sold to Okun and his 1031 Tax Group-something Ward LLC did not know at the time. Consequently Ward expected it’s millions to be deposited in a separate, stand alone, account. Unfortunately for Ward, their monies were “pooled with other exchangers’ money and later moved out of United Western Bank”, according to allegations of the Ward suit.
The Beat Goes On
As usual nobody is taking responsibility for these illegal transactions. The McCabes are stating that they are innocent and victims of Okun’s dirty dealing. So the beat goes on, victim’s monies disappear and nobody is left holding the bag–except the victims