Know Your 1031 QID: 1031 Exchange Consultants Indicted for Fraud

http://www.azcentral.com/community/swvalley/articles/0222swv-lpindictment0222.html

Couple face indictments on fraudulent practices
David Madrid
The Arizona Republic
Feb. 22, 2008 09:03 AM

A grand jury indicted a former Litchfield Park couple on Jan. 24 on several felony charges including defrauding clients out of more than $1 million, Arizona Attorney General Terry Goddard said.

Gordon Deibler, 52, and Renata M. Majda-Deibler, 36, were indicted on charges of illegally conducting an enterprise, fraud, theft and conspiracy to commit fraud and forgery.

Deibler faces 16 felony counts, and Majda-Deibler faces 10 felony counts.

They were arrested in January in the village of Manlius, Onondaga County, N.Y., where they were living. The couple waived extradition, and they were transported to Arizona, arriving Feb. 9.

Majda-Deibler, a doctor of optometry, was working at America's Best Contacts and Eyeglasses in Manlius.

"They failed to appear for several bankruptcy court hearings," said Andrea Esquer, press secretary for the Attorney General's Office. "The next thing we knew, they were in New York."

The indictment alleges that between September 1998 and January 2008, the couple accepted more than $1 million in property-sales revenue, investments and retainers for services.

The Attorney General's Office accuses the couple of creating fraudulent investment documents and failing to provide services that they contracted to provide through their Litchfield Park businesses, which were 1031 Exchange Consultants LLC, Tax Management Consultants LLC and Executive Realty Group LLC.

The money collected by Deibler and Majda-Deibler through 1031 Exchange Consultants was to be placed in trust and invested in property so that investors could defer capital gains taxes.

The indictment alleges that Deibler and Majda-Deibler used that money for themselves.

The indictment lists seven people as alleged victims.

It also accuses Deibler of forging an application to become a qualified intermediary member with the Federation of Exchange Accommodators.

A qualified intermediary is a neutral party that takes the proceeds from the sale of property, uses the money to purchase new property and then transfers the title of the new property back to the seller of the original property.

Deibler is also accused of completing a fraudulent credit application with Phoenix-based Coulter Cadillac.

If convicted of all charges, Deibler faces up to 51½ years in prison and Majda-Deibler up to 38½ years.

The indictment is the result of an investigation completed by the Attorney General's Special Investigation Unit. Assistant Attorney General Timothy Linnins is prosecuting the case.

Esquer said that the couple is still in custody, and they are each being held on $10,000 bond.

They were arraigned Feb. 14 and are scheduled for a pretrial conference at the end of March, Esquer said.