What do breast implants and tax-deferred exchanges have to do with each other? Apparently the infamous Donald K. McGhan might have the answer to that question.
Why would a man who has spent most of his life making breast implants decide to purchase three 1031 Exchange Qualified Intermediaries?
The MediCor website is currently being updated so I had to resort to Google Cache to research some of this.
From the MediCor Company History Page:
"Donald K. McGhan. Mr. McGhan is a founder of MediCor and has served as its chairman from its inception. Previously, Mr. McGhan was a founder and director of Medical Device Alliance, Inc., where he served as its chairman from its inception in 1996. Prior to that, Mr. McGhan was a founder and director of Miravant Medical Technologies, Inc., which was originally named PDT, Inc. Mr. McGhan was also a founder, chairman and president of Inamed Corporation from 1984 to 1998, founder, chairman and chief executive officer of McGhan NuSil Corporation, which was acquired by Union Carbide Corporation in 1990, and a founder, president and chairman of Immulok, Inc., which was acquired by Ortho Diagnostics Systems, Inc., a subsidiary of Johnson & Johnson in 1983."
On January 24, 2007 MediCor announced Don McGhan had resigned from the Board of Directors.
On February 6, 2007 David Keys, former chief executive officer of Southwest Exchange, resigned from Silver State's board of director. He was announced to board Jan 29.
Here is a press release I found from May 1, 2006:
BOISE, ID — May 1, 2006 — Arrow 1031 Exchange announced today that it had recently partnered with Nevada based Southwest Exchange Corporation to provide processing services for Arrow’s exchange transactions. This partnership will permit Boise based Arrow 1031 Exchange to expand their services along with providing increased financial strength to their customers. For example, each exchange transaction will now be protected by a Fidelity Bond in the amount of $20,000,000 and an Errors and Omissions policy of $1,000,000. Arrow 1031 will continue to maintain its depository relationships with local Idaho based financial institutions.
The strategic partnership of these two independent 1031 exchange companies has created a powerhouse of expertise in the field. Betty Kincaid, who founded Southwest Exchange Corporation in 1990, is a recognized exchange expert who worked with the Nevada legislature to craft legislation protecting clients using a Nevada registered intermediary. Betty is also the past President of the Women’s Council of Realtors. Kimberly Trent, President of Arrow 1031 Exchange, has been in the Real Estate industry for 18 years and has been in Boise, Idaho specializing in 1031 tax deferred exchanges since 1994. Vice President Christy Milliren has been in Boise’s real estate industry for 13 years and specializing in 1031 tax deferred exchanges since 1999. Both Kim and Christy (and a number of Southwest Exchange employees) have been awarded the designation of CES, or Certified Exchange Specialist, offered by the Federation of Exchange Accommodators, the professional trade association for qualified intermediaries. Southwest Exchange’s President and CEO, David Keys, is a CPA, Certified Management Accountant (CMA), Certified in Financial Management (CFM) and a Certified Valuation Analyst (CVA). Southwest’s CFO, Dean Koch, is a CPA and CVA. In addition, Southwest has two full time attorneys on staff. Kim and Christy are assisted in the Boise Arrow 1031 Exchange office by Laura Anderson, Marketing and Sales Representative.
As more investors use real estate investment as a wealth building tool, Arrow 1031 looks forward to continuing to provide the Idaho community with outstanding 1031 tax deferred exchange services. Kim, Christy, and the entire staff will continue to operate as the Arrow 1031 Exchange that you have grown to trust and respect. For more information about Arrow 1031 Exchange visit the Arrow 1031 online website www.arrow1031.com or call (208) 322-1031. Or for more information about Southwest Exchange Corporation, visit SEC online at www.SouthwestExchange.com or call 800.827.9150
Here is another press release:
"Southwest 1031 Exchange™ has two new affiliates!
BOISE, ID – Arrow 1031 Exchange announced on May 1 , 2006 that they have partnered with Nevada based Southwest 1031 Exchange™ to provide processing services for Arrow’s exchange transactions. This partnership will permit Boise based Arrow 1031 Exchange to expand their services along with providing increased financial strength to their customers. For example, each exchange transaction will now be protected by a Fidelity Bond in the amount of $50,000,000 and an Errors and Omissions policy of $1,000,000. Arrow 1031 will continue to maintain its depository relationships with local Idaho financial institutions.
SANTA BARBARA, CA – QES, Qualified Exchange Sevices, announced on October 20, 2006 that they partnered with Nevada based Southwest 1031 Exchange™ to provide processing services for QES’s exchange transactions. This partnership will permit Santa Barbara based QES to expand their services along with providing increased financial strength to their customers. For example, each exchange transaction will now be protected by a Fidelity Bond in the amount of $50,000,000 and an Errors and Omissions policy of $1,000,000. QES will continue to maintain its depository relationships with local California financial institutions.
The strategic partnership of these three independent 1031 exchange companies has created a powerhouse of expertise in the field. Southwest 1031 Exchange™ executives are Albert “Dee” Conton Jr., President who is a Nevada Realtor and native Nevadan. Dean Koch, COO/CFO is a CPA and CVA. Robert Noggle, Executive Vice President of Marketing and Education is a JD and CES and L. Gean Mundt, Vice President of Sales is a CES.
Arrow 1031 Exchange executives Kimberly Trent, President has been in the real estate industry for 18 years and has been in Boise, Idaho specializing in 1031 tax deferred exchanges since 1994 and is a CES. Christy Milliren, Vice President has been in Boise’s real estate industry for 13 years and specializing in 1031 tax deferred exchanges since 1999 and is a CES.
QES, Qualified Exchange Services, executives Kyleen Dawson, President has been in the real estate industry for 14 years and is a CES and Megan Amsler, Vice President has 7 years in the real estate industry and is a CES. The Santa Barbara office specializes in facilitating 1031 tax deferred, reverse and improvement exchanges.
Robert, Gean, Christy, Kim, Kyleen and Megan have been awarded the designation of CES, Certified Exchange Specialists which the Federation of Exchange Accommodators, the professional trade association for qualified intermediaries, awards this designation once you have had three years experience and pass the CES test.
As more investors use real estate investment as a wealth building tool, Southwest 1031 Exchange™, looks forward to continuing to provide outstanding 1031 tax deferred exchange services nationwide. "
Lots of lawsuits flying around. How are the meager real estate agents that referred clients going to pay the bill? Look to the "Deep Pockets" first. The Patriot Act requires financial institutions to "know their customer." UBS, if they were the securities broker, should not have allowed the placement of this money in such a risky investment. Silver State Bank definitely should have been filing suspicious activity reports the moment the company was sold in 2004.
Posted by: FYI | March 01, 2007 at 02:47 PM
This is a great tip.
http://www.pdfqueen.com
Posted by: Caleb | January 25, 2010 at 02:45 AM