ANSWERS TO "FREQUENTLY ASKED QUESTIONS" FROM CREDITORS OF THE 1031 TAX GROUP CASES, ET AL

1. Is the Trustee pursuing recovery from the fidelity bonds that the Qualified Intermediaries ("QI's")  purchased to protect  exchangers?

ANSWER: Yes, the fidelity bond insurers received timely notice of events that will result in claims against those bonds. My counsel is currently working with the Creditor’s Committee and reviewing our options. We hope to have a time-table for action soon.

2. Can we expect to have a distribution any time soon?

ANSWER: No, unfortunately, I am afraid any distribution will be at least many months away.

3. Can you tell us what we may expect in terms of distributions?

ANSWER: No, unfortunately, it is too early to tell what Okun’s assets may ultimately yield. The yield will be nowhere near what was estimated early in the case, as most of Okun’s assets are highly leveraged and are in various stages of defaults. Returns, if

any, may be dependent on litigation of causes of actions that the bankrupt entities hold.

4. What is the status of any tax loss that I might incur because of the events relative to the funds which were being held by The 1031 Tax Group, L.L.C. or any of its affiliates?

ANSWER: Like most tax related issues, there are no easy answers and this is a matter to be discussed with your tax advisors. For example, the nature of your loss may be affected by your status as a taxpayer (for example, individual, corporation, etc.), the nature of your other income and other personal factors. For this reason, it would be advisable to visit with your tax advisors as to the nature and timing of any deductions for losses incurred because of your involvement with your particular transaction.

5. Can I take a tax loss for the year 2007?

ANSWER: At the end of 2007, if the amount of your actual loss is known, it might be appropriate to take a loss during that year. Here again, we STRONGLY suggest you discuss the matter with your tax professional or advisor.

6. If I know of a buyer for the real estate, who should I contact?

ANSWER: Robert Davenport will assist me in the ultimate sale of the real property. He may be reached at (570) 296-7247 and his e-mail address is This e-mail address is being protected from spam bots, you need JavaScript enabled to view it  

7. Where can I obtain a listing of the real estate assets?

ANSWER: A general description of the real estate assets can be found on the website. As previously stated, any interested parties should contact Robert Davenport  (570) 296-7247 Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

8. What is the best way to contact the Trustee?

ANSWER: Via e-mail at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

9. Many employees of Mr. Okun were not paid for the time they worked nor did they receive the severance they were promised in writing. Is there any chance that they will see the money owed to them?

ANSWER: If you worked for any of the following entities which have filed bankruptcy petitions as listed below, you may be entitled to file a claim in that case:

Investment Properties of America, LLC

100 Corporate Drive LLC

Crossroads Miami Logistics Center LeaseCo LLC

Crossroads Miami Logistics Center LLC

CW Acquisition LLC

IPofA 5201 Lender LLC

IPofA Columbus Works LeaseCo LLC

IPofA Shreveport Industrial Park LLC

IPofAWest 86th Street Lease Co LLC

Simone Condo I LLC

Simone Condo II LLC

Columbus Works Virginia Trust

Parkway Virginia Trust

However, while it is early in these cases and all our analysis has yet to be completed, we do not know as yet whether there will be a recovery for the unsecured creditors at this time. If we do find any assets which could lead to recovery for the unsecured

creditors in any of the cases, filing a claim would be the only way to share in any recovery (if any).

At the appropriate time, the court will set a date by which you will have to file a claim. You do not have to wait until the deadline is set, and may file a claim now should you have one against one of those entities.

12. What efforts is the Trustee undertaking to put Mr. Okun in jail?

ANSWER: The Trustee deals only with the civil matters related to the case. The U.S. Postal Service and the United States Attorney’s office, both of whom deal with criminal matters, do have ongoing investigations and the Trustee is cooperating with those agencies in their investigations.