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1031 Accommodator Closes; Funds in Question

HENDERSON, NV-A local judge puts Southwest Exchange into receivership after it suspends operations without reimbursing investors. GlobeSt.com talks to the employee who called the FBI.

By Brian K. Miller | Updated on February 07, 2007

(Michelle Napoli, editor of TIC Monthly, contributed to this report.)

HENDERSON, NV-The owners of at least three IRS 1031 Exchange accommodation companies entrusted with tens of millions of dollars of investors’ money abruptly closed their offices here last week without returning funds to investors. The FBI tells GlobeSt.com it entered the owners’ Vegas headquarters last week and is currently evaluating complaints to determine if any federal laws were violated, but wouldn’t provide any more detail. One of the owners has reportedly met with the FBI, and a Clark County district judge this week put the main company, Southwest Exchange Inc., into receivership.

The owners of Southwest Exchange (dba Southwest 1031 Exchange) also own Qualified Exchange Services of Santa Barbara, CA, and Arrow 1031 Exchange of Boise, ID, which are listed on Southwest Exchange’s website as affiliates. Kyleen Dawson, one of the former owners of QES, tells GlobeSt.com that she and the owners of Arrow sold their companies to Capital Reef Management in October, at which time Betty Kincaid, the founder of Southwest Exchange, tells GlobeSt.com she severed all ties with her former company, in which she sold a controlling interest in 2004.

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