1031 Tax Group Okun Swindle “Mantra”: “The plaintiffs’ money has ‘disappeared’ and recovery is unlikely”

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

Newsflash: Denver “Okun Victims” Sue Former IXG Founders

IBS affiliate WX1112.com Greensboro Winston-Salem, NC published this deansguide article June 21, 2008

The plot continues to thicken as swindled investors scramble to recover what few pennies exist from their embezzled 1031 exchange funds, many representing investor life savings, in the fallen Ed Okun 1031 Tax Group “Ponzi” scheme.

A concerned “citizen” sent the following link to a June 20, 2008 Denver Business Journal storyEx-clients sue IXG founders in 1031 Tax Group Bankruptcy.” According to writer Renee McGaw ex-Okun employees Daniel and Shirley McCabe are the subjects of the lawsuit and controversy.

The McCabes were the original owners of the Investment Exchange Group (IXG) in Denver until Okun purchased the business in August of 2006 through his 1031 Tax Group business.

In the Denver Business Journal article Jeffrey Cohen, attorney for Denver based victims of the McCabes and Okun, stated:

We believe that the McCabes misused and mishandled funds that were under their control”

Main Source

http://www.bizjournals.com/denver/stories/2008/06/23/story3.html