How Do You Know That Your Exchange Funds are Really in
In recent months we've learned of Bernie Madoff and others who
perpetrated frauds upon their clients, most recently, Russell
Wasendorf, Sr. of Peregrine Financial Group (PFGBest). These trusted
investment brokers created fake statements to cover up their theft of
client funds. Wasendorf has admitted that he forged actual bank
statements using scanners, Photoshop, and desktop printers. He fooled
auditors, regulators and clients into thinking that there was proof
from the bank that client funds were all there.
We at Investment Property Exchange Services, Inc. (IPX1031®) take
security of client funds seriously. We have multiple safety and
security features in place, but stories like this make us all wonder,
“Is my money really safe?”
At IPX1031® the answer is decidedly, “YES.”
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- As a large company, we are able to protect our
clients through a separate banking staff that handles everything
related to client funds. Neither coordinators, sales executives, nor
the President or other senior management of IPX1031® have any rights or
abilities to open or close bank accounts or to transfer funds. Control
over our bank accounts is strictly limited to our multiple person
banking staff. Separation of duties is a critical audit control, and
having dedicated staff in which no single person has unfettered control
or access over bank accounts eliminates opportunities for embezzlement
of our client funds.
- All of our clients receive monthly statements
from the bank, not from the Qualified Intermediary.
is never in possession or control of the statements sent by the bank to
our clients. This separation eliminates any opportunity for any fake
statements and allows our clients to see all transactions and balances
affecting their accounts.