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.

Hi Robert and thank you for your response. To be clear, it is not my intent to hash this out via an online forum, however, this was my last attempt to contact you and/ or your company prior to engaging legal action. Thank you for responding. I don't do 1031 exchanges, it's not my line of work, thus the reason I hired and paid your company to perform the process. I called, at minimum, 8 times today to your main office line. I tried every single digit option available to reach someone, no answers. My friend in Jacksonville (who subsequently came to your Regus office) called from a 904 number. The call was answered. To me this indicates you/ your company was dodging my calls. Additionally, my attorney called this afternoon, left a message that he was interested in performing a 1031 for a shopping center transaction. Within 1 minute (I was still on the phone with him) his call was returned. Once we informed, (whom I guess was a sales agent) the gentleman what our situation was and that we have been trying to contact you/ your company all day, he said he would have to call us back. Check your phone logs, it was 5:46 EST. yet again, no reply After googling your "office addresses" each one is a Regus keyman office. The reality is, on many occasions, company can pay Regus a small fee so they can receive mail at the Regus office thus creating legitimacy of a business practice. This, combined with my friend going by your Jacksonville office, lack of return phone calls, avoiding text messages, and no email responses set off red flags that something suspicious was happening. Again, my naievity could have been in play, but this isn't what I do everyday and have trusted someone I don't know with $113,000. An additional google search by attorney uncovered the February 28th judgement of case number SC12-3727 where Hetsler Mediation and Valuation was prosecuted by the FL State Bar for unlawfully practicing law in the state of FL. Out of respect, I will not post the link here. Subsequently, around 7:52pm est I received a call from someone in your office stating that he would send me an email with proof that the wire went through and was accepted by my attorneys office. It's currently 10:26pm and I have not received an email. I verified its not in my junk folder either. The only email I received from you was at 12:47 this afternoon saying you personally called the bank and the funds would arrive within the hour. I emailed a response at 2:14 noting that the funds had not arrived. Again, no response from you or your team. (As noted above you have a smart phone and are connected electronically to your affairs). I get it, mistakes happen. I'm sure I made plenty today myself; however, I didn't make a mistake with $113,000 of someone else's money then refuse to contact them when there is concern... and it was not until I took to a fourm to discuss concerns and ask for council from others that I received a response from you. Again, I just want the money wired into the account and your company to perform the work in which it paid you to do. (Speaking of payment, my credit card was charged twice and it took me reaching out on multiple occasions to get a refund for the "accidental" charge). I would anticipate this matter to be rectified by 10am tomorrow. At that time I will gladly post on this thread how you kindly cleaned up this mess.

@Robert Hetsler This is a tough one I did not realize qualified intermediaries require no licensing and no over sight what so ever.. so I can see where folks could get freaked out... there is a huge amount of trust.. and we all know about that one nefarious individual who went on a rampage with clients money.. and if the intermediary I was working with had a Regius office I would be somewhat concerned as well.. but I am sure you guys will work it out. Lots of trust goes into this unlicensed and unregulated business.. from what I can see.. and your dead on your reputation is EVERYTHING and your correct to protect it...

I am seeing a made for TV movie or even mini series coming on. https://www.questia.com/newspaper/1G1-57505497/man...

@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.

I wonder if the car exploded due to someone else not getting their funds.........

Qualified Intermediary Scam?

Stanley Crawford

Real Estate Agent · Ivor, VA · Member since 2011 · 73 posts · 21 votes

8y

http://www.jaxmediator.com/

1 Reply

Cheryl Dopp

Member since 2018 · 1 post · 0 votes

8y

I had the opportunity to work with Robert on one of my deals. I find him very intelligent, honest, reasonable in price, and willing to help with advice that makes the process easy.

As an investor with multiple properties, I can tell you that I am often running from place to place juggling, and sometimes not getting the expected help from people who work for me. Robert is clear about the necessary lead times, which people do not always follow, and which enables him to personally handle the funds on behalf of his clients: he does every transaction.

When I spoke with my attorney about the fees I was being charged for his services, she was shocked. Robert is a small business owner, like many of us, running around trying to track down contractors, emails, tenants, cleaners, you name it, and Robert is tracking down banks, bank clerks, worried investors, and acting as the intermediary for the "small guy" trying to build wealth.

I understand the angst of the original poster. I agree about the difficulty of contact. However, I know from my conversations with Robert that he is a man of integrity being pulled in many directions. Like many businesses, such as contractors I have dealt with, the client flow is bumpy, meaning that there are slow times and peak times, and hard to turn down business. And when things get sticky (not as planned), a lot of extra effort gets spent on just a few outstanding items. We all know that.

I have been trying to get in touch with Robert over a new transaction. I hope this thread has not contributed to him being run out of business. It would be a shame, and follow the motto "No good deed goes unpunished". And Robert has been a client advocate, the original meaning of the word lawyer. If being an advocate for someone and growing their wealth is some sort of crime, I would like to know about it.

0 Reply

Brandon Lowery

OP

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

8y

Hi Cheryl-

Did you read the lawsuits filed against Robert? He has stolen millions of dollars. He advertises being a "large company" which in reality are Regus offices where he receives mail. He's a fraud and this thread is published to help others when dealing with him.

As far as i know he's in the hospital and his wife has filed for divorce and separation of financial obligations.

1 Reply

Kimberly G.

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.

8 Reply

Bryan Feik

Investor · Denver, CO · Member since 2017 · 36 posts · 33 votes

8y

I find it difficult to believe Cheryl is a true investor or someone who has the intention to contribute to this site. There is zero justification for what Robert has done! I imagine he has been robbing Peter to pay Paul for years and it finally caught up to him. I personally hope he recovers from his injuries so he can be helped accountable, hopefully in criminal court.

3 Reply

John P.

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

8y

Originally posted by @Cheryl Dopp:

I had the opportunity to work with Robert on one of my deals. I find him very intelligent, honest, reasonable in price, and willing to help with advice that makes the process easy.

As an investor with multiple properties, I can tell you that I am often running from place to place juggling, and sometimes not getting the expected help from people who work for me. Robert is clear about the necessary lead times, which people do not always follow, and which enables him to personally handle the funds on behalf of his clients: he does every transaction.

When I spoke with my attorney about the fees I was being charged for his services, she was shocked. Robert is a small business owner, like many of us, running around trying to track down contractors, emails, tenants, cleaners, you name it, and Robert is tracking down banks, bank clerks, worried investors, and acting as the intermediary for the "small guy" trying to build wealth.

I understand the angst of the original poster. I agree about the difficulty of contact. However, I know from my conversations with Robert that he is a man of integrity being pulled in many directions. Like many businesses, such as contractors I have dealt with, the client flow is bumpy, meaning that there are slow times and peak times, and hard to turn down business. And when things get sticky (not as planned), a lot of extra effort gets spent on just a few outstanding items. We all know that.

I have been trying to get in touch with Robert over a new transaction. I hope this thread has not contributed to him being run out of business. It would be a shame, and follow the motto "No good deed goes unpunished". And Robert has been a client advocate, the original meaning of the word lawyer. If being an advocate for someone and growing their wealth is some sort of crime, I would like to know about it.

I am a big proponent of listening to both sides of the story and all that but in this case there are multiple people who indicate getting taken by this guy if I am not mistaken. For you to then actively still want to 1031 your money with him would be risky at best. Having said all that I hope you are right. I hope he has a stash of money somewhere and makes all these people whole in the end. However, I think that is highly unlikely. Good luck to all the victims here.

0 Reply

Andrew B.

Savannah, GA · Member since 2017 · 2 posts · 0 votes

8y

You people are sick.. First off Dr. Robert Hetsler has multiple businesses all run and operated by him personally. He bought his home with hard earned money hes acquired over decades of hard work. It is kind of hard when you are in a coma to handle your business. Robert was the only person who could access his accounts so it would be difficult to do anything WHILE YOUR IN A COMA IN ICU...I do know before the accident EVERYONE received their money and the only ones who haven't IS BECAUSE HE WAS INVOLVED IN A HORRIBLE ACCIDENT

0 Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

8y

Originally posted by @Andrew B.:

You people are sick.. First off Dr. Robert Hetsler has multiple businesses all run and operated by him personally. He bought his home with hard earned money hes acquired over decades of hard work. It is kind of hard when you are in a coma to handle your business. Robert was the only person who could access his accounts so it would be difficult to do anything WHILE YOUR IN A COMA IN ICU...I do know before the accident EVERYONE received their money and the only ones who haven't IS BECAUSE HE WAS INVOLVED IN A HORRIBLE ACCIDENT

well maybe your right but somehow I doubt it.. and for sure if your running a 1031 company and taking in millions of dollars and there is no back up in case something happens like this.. then that is a poorly thought out and run business were one person stops these deals and puts all these people at risk of a failed 1031 even if they get the money back.. they lost their time lines.

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John P.

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

8y

Originally posted by @Andrew B.:

You people are sick.. First off Dr. Robert Hetsler has multiple businesses all run and operated by him personally. He bought his home with hard earned money hes acquired over decades of hard work. It is kind of hard when you are in a coma to handle your business. Robert was the only person who could access his accounts so it would be difficult to do anything WHILE YOUR IN A COMA IN ICU...I do know before the accident EVERYONE received their money and the only ones who haven't IS BECAUSE HE WAS INVOLVED IN A HORRIBLE ACCIDENT

Look back to post 1 it is well before the accident. Maybe even months before the accident. He was living on borrowed money back then it appears. I wish you were right but I have a feeling you are not. Just a guess though.

0 Reply

Brandon Lowery

OP

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

8y

I’ve never heard of a 2017 Ford Mustang mysteriously catch on fire. If a car catches on fire, you would be able to exit very easily. If the car were to “explode” then I can see a possible injury.

If the car did indeed explode by itself, there would be a lawsuit against Ford

0 Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

8y

Originally posted by @Brandon Lowery:

I’ve never heard of a 2017 Ford Mustang mysteriously catch on fire. If a car catches on fire, you would be able to exit very easily. If the car were to “explode” then I can see a possible injury.

If the car did indeed explode by itself, there would be a lawsuit against Ford

yes and the person who got hurt could subrugate his case to all these folks who have money tied up with him were the money seems to be missing..

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Andrew B.

Savannah, GA · Member since 2017 · 2 posts · 0 votes

8y

The car was a modified Roush stage 3 mustang recently purchased. The investigation determined it was after market parts that caused the car to catch fire and explode...probably installed by a Roush associate. So I imagine he does or will have a substantial law suit.

If channel 4 would properly investigate a story they reported on perhaps more people would be informed of any new news

0 Reply

Dave FosterBusiness Member

Qualified Intermediary for 1031 Exchanges · St. Petersburg, FL · Member since 2013 · 9k+ posts · 9k+ votes

8y

@Bryan Feik, Whatever concludes this string, you are right about the control of funds issue. Unfortunately the Fed has had a similar feeling about the trustworthiness of the US public and so regulated the issue of constructive and actual receipt. So the rules are what they are. But that doesn't have to mean blind trust.

There is a very easy answer and one that we've been employing for several years. And that is to use individual segregated dual signatory accounts. Many QIs still use pooled trust accounts. This is not a good idea. Those that segregate accounts still usually have them under the master QI account. This allows a better paper trail and some segregation from the actions of other investors but does nothing to protect you from a QI - honest and sloppy or dishonest and larcenous.

A segregated account protects you from another clients divorce, bankruptcy or EPA superfund claim. Dual Signatory means the account is in your name. It is your account. But it takes both your signature and the signature of the QI to transfer money - You can't move funds without the cooperation of the QI. The QI can't move funds without the cooperation of you. That doesn't rise to constructive receipt so you are protected both financially and under the 1031 regs.

These accounts are more expensive and time consuming for us as the QI to set up. Interest is not earned. But they're infinitely superior to avoid the potential for most bad things.

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Michaela G.

Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes

7y

Just came across this thread again and wonder what the present situation is.

0 Reply

Peter Sanchez

Real Estate Investor · Washington, DC · Member since 2014 · 236 posts · 328 votes

7y

Originally posted by @Natalie Kolodij:

Dr. Robert Hetsler, Jr., J.D., CPA, CVA, FCPA, CFF, MAFF, CMAP

I was able to find he is a CPA in VA...I'm curious if he's actually a Doctor too. His Linked in also reads that he went to Harvard, and law school. Separately.

I'm curious if he actually has the string of qualifications after his name

"CPA, CVA, FCPA, CFF, MAFF" These are all CPA designations, so no right to be called Dr.

CMAP This is also not a DR

J.D. means he's a lawyer (well, that he has a law degree, not that he's practicing). Technically the degree is "Juris Doctor" but in 20 years since I graduated law school, out of the thousands of lawyers I have interacted with, I have only ever met one person who is a JD and called himself "Dr."

And...I won't name and shame his law school, but when I googled it, this came up:

“[redacted] School of Law is on the list of ABA-approved law schools, and it remains subject to published notices that it is operating out of compliance on specific standards,” he said. “The school has been directed to take specific remedial action to demonstrate that it has come back into compliance with those standards. The school’s accreditation remains in place while the review processes are continuing.”

In other words, if they don't clean up their act, the place where he got his law degree could lose it's accreditation.

0 Reply

Ryan Seib

Attorney and Real Estate Broker · Madison, WI · Member since 2016 · 265 posts · 100 votes

7y

For those that asked what might happen to their money and tax situations now you may want to check this out and see what the IRS and the bankruptcy court ruled:

https://www.realized1031.com/blog/what-happens-if-your-qualified-intermediary-files-bankruptcy

0 Reply

Brandon Lowery

OP

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

7y

Opening this chain... any updates on Hestler?

0 Reply

Kimberly G.

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

6y

@Brandon Lowery This is the last article that I read

https://pressfrom.info/us/news...

0 Reply

Bryan Feik

Investor · Denver, CO · Member since 2017 · 36 posts · 33 votes

6y

@Kimberly G.

I love how he blames the fire for all his problems, he was having trouble paying people back long before that point!

He has done 300 total exchanges, assuming he charged $1000 per transaction that’s 300k in revenue. Hardly enough to fund his lavish lifestyle.

1 Reply

Michaela G.

Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes

6y

Just remembered this situation and googled. Looks like there's a settlement.I hope everyone ended up getting made whole or almost whole.

https://www.jacksonville.com/news/20191022/settlement-signed-in-ponzi-lawsuits-with-jacksonville-car-fire-survivor

1 Reply

John P.

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

6y

@Michaela G. That's great news! Thanks for sharing. That was really a sad situation. I hope the victims are made whole or at least nearly whole.

0 Reply

Qualified Intermediary Scam?

Qualified Intermediary Scam?

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