Qualified Intermediary Scam?

Qualified Intermediary Scam?

Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes

Hi everyone...  I'm new to this forum, thanks for having me.

I'm in a little bind and need some help related to a 1031 exchange where a Qualified Intermediary is holding $113,344.93 of my money.   Looking for some advice.

It's this group- http://www.qualifiedintermediary.net/  (moderator, i hope it's ok to list the company, i would like to verify it's not a scam).

I closed on a new property today at 3pm (EST).   i told this Hetsler group last wednesday, 8/2/17 that today was the closing.   I reminded them on Friday, 8/4/17 and was told the funds would be wired into the account that night.   Didn't happen.   

I was told today by 10am the funds would be in the account.   Again, didn't happen.   Was told 2pm, didn't happen.    

They're dogging my calls and will not return emails/ or any correspondence related to this transaction.  I had a friend go by their "office" and it is a Regus key man office space.   

What are my options related to access to the funds to make sure they have not scammed me?   The dude's name is Robert Hetsler.   Apparently "Dr." but I'm not buying that is legit.  

Thanks everyone.

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Property Manager · Northeast Florida · Member since 2015 · 135 posts · 76 votes
8y

@Cheryl Dopp - So you have joined BP today, just to comment on this? 
I'd encourage you to go beyond just the first posters comments and feel the anguish of all the investors that lost money.
Then come back and offer some real value in your review. " trying to get in touch with Robert over a new transaction" .... seriously? Please read all 7 pages. 

I think everyone would agree that - NO this thread has not contributed to him being run out of business - His actions have led to him to BE out of business.

Did investor funds pay for this? His $500 QI fee certainly did not ..... 06/22/17, Robert Hetsler paid $1 million for the 5,589-square-foot home at 4871 Scenic Marsh Court, off Heckscher Drive. Now in foreclosure! 

I am in the middle of my first 1031 exchange right now and my QI is

The fee is 1k plus $200 on the back end for the identified property. Your attorney will not be shocked by this rate.  You will be in good hands with Claudia. Good luck on your next transaction.

See this reply in the discussion

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  • Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    8y

    @Jay Hinrichs   It always amazes me that people do not have an escape plan.  I mean Andorra is lovely and they do not extradite for white collar crimes to the US. 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Account Closed  although no one wants to see someone seriously injured .. or like mentioned in a bad fire.. but there needs to be more than one person who has access to the QI funds ... If it was me I would see what bank recieved the funds.. then contact the manager and owner.. figure out who can sign on the accounts.. if its only the one person then I would move for a court order to free the funds..  having no back up plan in case this QI fell over dead one day is not appropriate ... can you imagine a title co.. with only one signer on an account.

    take your US dollars to Venezuela  money goes far there.. or Brazil...

  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    8y

    @Jay Hinrichs Good point.

    Nobody is in the title business anymore unless they are ALTA Best Practices compliant -- either third party certified or lender verified. Identification of account signatories is info contained in the agency's best practices manual.

    QIs are not regulated like title companies though... 

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  • Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    8y

    I am seeing a made for TV movie or even mini series coming on.

    https://www.questia.com/newspaper/1G1-57505497/man...

  • Investor · Las Vegas. Jacksonville, Bay Area Ca, Nv, Ca, Fl · Member since 2015 · 511 posts · 220 votes
    8y

    again my response is "WOW"

  • Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes
    8y

    It might make sense for a few people who have lost money to jointly hire an attorney down there. Probably a real estate or business litigation attorney. Might be good if the attorney knows something about conservatroships too!? That is, maybe a temporary conservatorhsip can be done to get a professional fiduciary in place to vote his corporate shares and get someone new in charge of the business and thus access to the money!?  Good luck to all. 

  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    8y

    @Basel Djazmati Get your money out of there. The 1031 guys on this site will chime in for sure but my understanding is there is no requirement that your money stays with a particular QI just because you chose them initially. Even transmitting the funds to you own attorney could likely satisfy the statute temporarily. 

    I would demand a transfer of your funds in writing, immediately. If no response, file suit... again, immediately -- this will trigger the fidelity bond attorneys. I wouldn't want to be the last depositor with funds under the control of this operation.

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  • Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
    8y

    This guy is a total train wreck.   Sorry to hear about all of this guys.   After a ton of pestering calls, i was able to complete my transaction.   

    Is there a government oversight committee who could step in?

  • Investor · Las Vegas. Jacksonville, Bay Area Ca, Nv, Ca, Fl · Member since 2015 · 511 posts · 220 votes
    8y

    This is a unregulated industry. Only after rampant fraud will the Fed's investigate, or when someone with connections gets taken. 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Tom Gimer  good luck collecting on a Fideltiy bond  they are usually nominal amounts and its like pulling teeth to collect on any bond.

  • Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes
    8y
    Originally posted by @Jay Hinrichs:

    @Tom Gimer  good luck collecting on a Fideltiy bond  they are usually nominal amounts and its like pulling teeth to collect on any bond.

     That's been my experience as well. They make it sound like it's insurance but then when it's time to pay they hire defense counsel and fight it and then try to settle for less than the full amount.  I have seen that happen. Sort of sad really. 

  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    8y

    @Jay Hinrichs I would tend to agree... (although ours is $500,000 with no aggregate) but the correct coverages would need to be purchased to apply in the QI scenario.

    My point was more to be the squeaky wheel and escape.  Musical chairs.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Tom Gimer  more to the point your regulated by the insurance commission.. QI's once you dig into it are totally unregulated.. TOTALLY  so its old school Business  Caveat Emptor ... And once that guy I was talking about who was on American Greed figured it out..

    He started buying up mom and Pop Q I s all around the country then would raid their trust accounts.. and basically had a massive Ponzi going.. buying yatchts  Jets.. 1 million dollar wedding to the 25 YO hot Brazilain he married  and this guy was 50 and not HOT.. lol  you get the drift..

    its a great episode.. I love that show.. although when you watch it you wonder how any investor invests with anyone anywhere.. the amount of stupid crooks out there..

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Tom Gimer @Account Closed  here is the episode I am talking about  anyone considering a 1031 should watch it with interest

    https://www.cnbc.com/2014/03/31/young-lust-goes-bust.html

    And then pick your Q I  VERY VERY Carefully.

  • Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
    8y

    Hi everyone.

    I was reviewing some old documents related to the properly i purchased using the 1031 funds from Hestler.   I found their wire information.   It might help someone.

    i was instructed to "wire to" :

    Account Holder

    Hestler Mediation & Valuation

    4776 Windsor Commons Court

    Jacksonville, FL 32224 with a phone number of 800-two two five- five nine three five

    ABA # 121000248

    Account # 5229906887

    I'm not sure if it will help or not, but that's the info i had from my transaction.

  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    Interesting...

    http://www.kuam.com/story/36300478/qualified-intermediary-capital-advisor-founder-dr-robert-hetsler-jr-to-speak-at-san-diego-investor-expo

  • Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
    8y
    The link to this video did not work.  Do you have another?

    Originally posted by @Jay Hinrichs:

    @Tom Gimer @Account Closed  here is the episode I am talking about  anyone considering a 1031 should watch it with interest

    https://www.cnbc.com/2014/03/31/young-lust-goes-bust.html

    And then pick your Q I  VERY VERY Carefully.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Brandon Lowery  just google  American greed  Ed Okun  that will get you were you need to  be

  • Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
    8y
    Found link but couldn’t watch entire episode Originally posted by @Jay Hinrichs:

    @Brandon Lowery  just google  American greed  Ed Okun  that will get you were you need to  be

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Brandon Lowery:
    Found link but couldn’t watch entire episode Originally posted by @Jay Hinrichs:

    @Brandon Lowery  just google  American greed  Ed Okun  that will get you were you need to  be

     well I am sure you got the JIST the guy used Q I funds to buy all sorts of toys and ended up going to jail basically for the rest of his life.

  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Brandon Lowery:
    Found link but couldn’t watch entire episode Originally posted by @Jay Hinrichs:

    @Brandon Lowery  just google  American greed  Ed Okun  that will get you were you need to  be

     well I am sure you got the JIST the guy used Q I funds to buy all sorts of toys and ended up going to jail basically for the rest of his life.

     wait a second, you telling me a person on a show called American Greed, did something illegal/greedy.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y

    @Matt K.  its quite germane to this thread.. 

  • Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
    8y

    Whew.  

  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    8y

    @Jay Hinrichs Or you could just drop into any one of the company's 100+ offices and see what's up. Ooops... they appear to all be REGUS shared office space.

    I would hire an attorney immediately and request pre-trial/pre-judgment attachment. 

    Gimer Law518 Reviews
  • Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    8y

    Speaking of TV.... sometimes news (local) have people that "fix" problems for people. Then they do a series about it get ratings blah blah... could be worth pursuing if you're not getting traction elsewhere. 

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