From BCBR.com
National 1031 Exchange Service at 1402 28th St. owned by Debra Sue Edwards allegedly "failed to return substantial amounts of money" to at least two customers, Boulder Police said in a press release.
Edwards said the situation was a "business matter."
"We're closing down the business, and any losses will be covered by our insurance," she said.
National 1031 Exchange serves customers who have sold commercial real estate and wish to have the profits from the sale held, tax free, until they locate new property to purchase. The process is allowed by the Internal Revenue Service.
Under the company's contract, Edwards is supposed to return the money when a new property has been located, minus a small handling fee, police said.
But police said they received two complaints saying Edwards allegedly did not return substantial amounts of her customer's money. In one case, a business owner alleged that he had recently sold a property and given National 1031 Exchange more than $1.2 million to hold for him while he searched for a new property.
"When he found a place to purchase, the company wired him some of the money, but he says Edwards failed to return more than $400,000," police said. "After several requests, the victim was told he would have to file a demand letter with the company's insurance provider to collect the additional money."
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