Unbelievable as it may be after decades of thievery or gross negligence, no entity, either government or private, is responsible for the oversight of intermediaries in a §1031 exchange. To protect investors and their brokers from negligent or unscrupulous intermediaries, the Attorney General should be authorized to register and regulate these individuals before they can hold themselves out as intermediaries and accept funds or title to property.

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Failure of §1031 “qualified” intermediary to fund defers profit tax