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

@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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David Song
Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
8y
This Robert guy is obviously a crook. I was reading his earlier response post. What a shame.
Hope everyone will learn that not everyone on BP is necessarily good. Bad apples are everywhere.
I have felt that a lot of folks on BP are trying to make money by providing TK services or referrals. Those kind of activities may cause deterioration of BP and hurt its reputation in the long run.
3 Reply
Brandon Lowery
OP
Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
8y
wow. Crazy. Where did you get this info?
0 Reply
Steven Jeau
Gardena, CA · Member since 2017 · 1 post · 1 vote
8y
I am new to this thread. Wish I had known about it a while ago. Long story short, a large sum of money was sent to Hetsler's company and no one answers telephone calls. I wish to get in touch with others with similar problems. I have sent massages to some people who posted here. Thanks.
1 Reply
Account Closed
Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
8y
I feel so bad for so many of you, especially those that have potentially lost large sums of money. After reading this thread, I am hesitant to ever consider a 1031 exchange. No government oversight, rampant fraud, and the possibility of being wiped out overnight scares the living daylights out of me. I thought the American Greed episode with Ed Okun was an outlier but it looks like it is more common than I thought.
I'd rather pay 39% taxes on the profits of a sale than the risk of losing all of the money to a fraudster. I really hope all of you get your money back.
1 Reply
John P.
Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes
8y
Originally posted by @Account Closed:

I feel so bad for so many of you, especially those that have potentially lost large sums of money. After reading this thread, I sure as hell ain't ever doing a 1031 exchange. No government oversight, rampant fraud, and the possibility of being wiped out overnight scares the living daylights out of me. I thought the American Greed episode with Ed Okun was an outlier but it looks like it is more common than I thought.
I'd rather pay 39% taxes on the profits of a sale than the risk of losing all of the money to a fraudster. I really hope all of you get your money back.
I agree it is horribly sad that people are losing their money. However there are reputable 1031 companies. For example many large title companies have 1031 companies. This situation sucks totally but there are other safer options. My sincere sympathies to the people who lost money here. It sincerely breaks my heart with each new post.
2 Reply
Tae C.
Flipper/Rehabber · Knoxville, TN · Member since 2017 · 130 posts · 72 votes
8y
As I read every single post, I found myself becoming more and more angry. I just do not understand why people feel the need to deceive and scam others in this manner...and the unfortunate reality is there are many that do this type of thing it seems.
I am curious, I would imagine there was some kind of contract signed with this “business”...was there anything in it that would give you guys a legitimate and legal escape from this?
0 Reply
John P.
Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes
8y
I recall Hetsler was trying to sell some real property in Jacksonville earlier in the year. There was a thread on BP about it. He probably sold them but if not maybe you could get a lien on them. He had 3 or 4 properties if I recall. GOOD LUCK to you all!
1 Reply
Brandon Lowery
OP
Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
8y
I’m sure he has some assets in the mini storage business. He was funding that business primarily by the 1031 money. I would have whomever is searching head down that rabbit hole.
1 Reply
Matt K.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
8y
Originally posted by @Account Closed:

I feel so bad for so many of you, especially those that have potentially lost large sums of money. After reading this thread, I am hesitant to ever consider a 1031 exchange. No government oversight, rampant fraud, and the possibility of being wiped out overnight scares the living daylights out of me. I thought the American Greed episode with Ed Okun was an outlier but it looks like it is more common than I thought.
I'd rather pay 39% taxes on the profits of a sale than the risk of losing all of the money to a fraudster. I really hope all of you get your money back.
You could always have your attorney do it... and hopefully it'd be one you have significant history with.
0 Reply
Matt K.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
8y
Originally posted by @Brandon Lowery:

I’m sure he has some assets in the mini storage business. He was funding that business primarily by the 1031 money. I would have whomever is searching head down that rabbit hole.
If you google his email address it's linked to a storage place in FL...
1 Reply
Brandon Lowery
OP
Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
8y
Does anyone know if he’s still in the hospital or visited his home? Father? Mother? Wife brother etc? Not that you would get your money back from them but maybe the could provide some insight
1 Reply
Brandon Lowery
OP
Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
8y
Has anyone received additional traction on getting their money back?
0 Reply
Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
8y
Don't forget that BK/receivership can bring into play some interesting rules. For example, payments made in the last X days before the filing could be considered preferential and subject to recovery/return to the estate and distribution amongst creditors. So while some 1031 clients may feel blessed right now they may not have escaped this. What a mess. Good luck to all.
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1 Reply
Kay Hightower
Real Estate Agent · Oxford, MS · Member since 2016 · 2 posts · 2 votes
8y
We completed a 1031 exchange with Hetsler at the end of October. I did a lot of research to find a QI with good ratings who didn't charge and arm and a leg prior to choosing him, as our rollover was a relatively small amount. Thankfully, our funds were only with him for a couple of weeks. There was difficulty communicating with them when it was time to close. Our funds were finally wired to the closing attorney the day after scheduled closing,, after repeated phone calls. I received copies of court filings from Mark Healy, the Assignee, with Michael Moeker and Associates including a proof of claim form. In case someone affected sees this who hasn't received the copies, here's some pertinent information, less the phone numbers and email address:
Mark Healy , Assignee
Michael Moecker & Associates, Inc.
1883 Marina Mile Blvd., Suite 106
Fort Lauderdale, FL 33315
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
8y
@Tom Gimer those in the Madoff mess that got paid out ended up dealing with claw back.
I think it will boil down to how much money there is to pay the attorneys to go after claw back funds.
I know from what I have seen he had these storage units etc.. but experience dictates they usually mortgage them up as high as possible so even if he owns them there may be limited equity and in a fire sale you know how that goes never gets sold for market and then the attorneys/BK Trustee jump in and the poor investors get not much
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1 Reply
Kay Hightower
Real Estate Agent · Oxford, MS · Member since 2016 · 2 posts · 2 votes
8y
our 1031 exchange was completed at the end of October, so I have no remaining funds with Hetsler. I feel quite fortunate that mine did complete, though as you can see in my previous post, it was not a smooth transaction.
1 Reply
Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
8y
Wow! What a mess! I'm sorry for all of you who's funds are still hung up.
I just looked on Hetsler's profile and there's only 1 reference - a good one. I think those of you who've made negative experiences might want to add those to his profile
2 Reply
Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
8y
Maybe this is where some of the money went:
Robert Hetsler paid $1 million for the 5,589-square-foot home at 4871 Scenic Marsh Court, off Heckscher Drive. It was built in 2000 and sold for $550,000 in 2002.
2 Reply
John P.
Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes
8y
Not sure if anybody has mentioned it but secretary of state shows Rural Storage, LLC with Mr. Hetsler's name:
Detail by Entity Name
Foreign Limited Liability Company
RURAL STORAGE, LLC
Filing Information
Document NumberM16000008749FEI/EIN Number81-4052628Date Filed10/28/2016StateWYStatusACTIVE
Principal Address
30 N GOULD ST, SUITE 5667
SHERIDAN, WY 82801
Mailing Address
190 S LOWDER STREET
MACCLENNY, FL 32063
Registered Agent Name & AddressHETSLER, ROBERT
190 S LOWDER ST
MACCLENNY, FL 32063
Address Changed: 04/26/2017
Authorized Person(s) DetailName & Address

Title MGRM

HETSLER, ROBERT
190 S LOWDER ST
MACCLENNY, FL 32063 Annual Reports
Report Year Filed Date
2017 04/26/2017

2 Reply

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

A property on Scenic Marsh Court (not sure if same as mentioned above) is owned by Rural Storage, LLC it appears:

Property Information
Owner(s):	Rural Storage Llc	Mailing Address:	190 S Lowder St, Macclenny, FL 32063
Owner Phone:	Unknown	Property Address:	Scenic Marsh Ct, Jacksonville, FL 32226
Vesting Type:	Alt. APN:
County:	Duval	APN:	160734-1125

Brandon Lowery
OP
Investor · Mooresville, NC · Member since 2017 · 29 posts · 22 votes
8y
Has anyone heard where he is? Ie hospital? Home? etc?
0 Reply

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

A few properties in that LLC's name. I hope y'all's attorney can get a lien slapped on these things:

169223-0000	10100 Heckscher Dr Jacksonville, FL 32226	Rural Storage Llc
169224-0000	10100 Heckscher Dr Jacksonville, FL 32226	Rural Storage Llc
169130-0015	9839 Heckscher Dr Jacksonville, FL 32226	Rural Storage Llc
160734-1125	Scenic Marsh Ct Jacksonville, FL 32226	Rural Storage Llc
159684-0045	Shellcracker Rd Jacksonville, FL 32226	Rural Storage Llc

Account Closed
tampa, FL · Member since 2017 · 1 post · 2 votes
8y
i do know that Mr hetsler is still in the hospital in a coma. I wonder if the purchase he did n the summer was a home or storage unit. guess Google maps could show the property. the car he was in was a brand new mustang that just blew up...
i just googled 4871 scenic marsh court. it's 4971 scenic marsh court. it's a house he bought. sounds like he's doing a ponzy scam. I hope you guys get your money but it does not look like you will get it. good luck.
2 Reply
John P.
Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes
8y
Originally posted by @Account Closed:

i do know that Mr hetsler is still in the hospital in a coma. I wonder if the purchase he did n the summer was a home or storage unit. guess Google maps could show the property. the car he was in was a brand new mustang that just blew up...
i just googled 4871 scenic marsh court. it's 4971 scenic marsh court. it's a house he bought. sounds like he's doing a ponzy scam. I hope you guys get your money but it does not look like you will get it. good luck.
I am not sure. That's a different APN then I posted above. This one, you post, shows up as a different APN and different owner.
0 Reply
Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
8y
I wonder if the car exploded due to someone else not getting their funds.........
3 Reply

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