Vesta was a San Jose-based company that was reportedly the largest independent 1031 exchange intermediary company at one time.
A 1031 exchange is a process where investors defer taxes on the sale of a property by investing the sale proceeds in another similar investment property, and a qualified intermediary holds the proceeds from the sold property and gives them up so the investor can invest in the new one.
Multiple independent Vesta clients are claiming they gave millions of dollars to Vesta in 1031 exchanges over the past eight months, but that the company has failed to provide their money when requested, according to the district attorney's office.
The company's founders have filed federal civil suits against each other, alleging the embezzlement of millions of dollars in company assets in recent years.
Anyone with information about this case is asked to contact Deputy District Attorney Mike Fitzsimmons with the county's Real Estate Fraud Unit at (408) 792-2801 or at firstname.lastname@example.org.