Let me start at the beginning: In Oct. 2005, I took out some health insurance in Salem, Oregon. The broker who sold me the health insurance gave me a brochure listing all sorts of items he dealt with... one was "alternative investments" (which is the one I got involved with) annuity's, Medicare plans, Universal Life/Term Life Insurance, 401K's, IRA's etc. I'm happy with my health insurance, but at the same time he talked me into investing (through him) with a company called Pacific Payment Xchange, LLC in Las Vegas NV. He told me he, himself, had money invested as well (which turned out to be a lie).
I was given two promissory notes, both dated Nov. 14, 2005. One was for $16,009.84 and the other for $9,339.75. So originally, it wasn't an IRA but an 18-month promissory note. The custodian for both "notes" was Trust Company of the Pacific in Las Vegas. The $9,339.75 note became a "non-qualified trust account" & the $16,009.84 became a "traditional IRA." I have no idea when this took place. I have several "customer reports" and here's one dated 01/01/2004 to 01/26/2007. I had an account in Reno with AXA Equitable which I closed in order to invest with this guy. Lost $600+ on that transaction. At that time they called it an IRA Rollover & right away they took out $200 as "fees." The report says it was "disbursed" and there's no cash account balance. Since then they've tried to collect $90 in fees every so often but I don't pay it.
The other report says the exact same thing except the dollar amount is different. This Pacific Payment Xchange went out of business & perhaps that's when Trust Company of the Pacific took it over (the guy who ran PPX & the guy who ran TCP were buddies) and it became a traditional IRA & a non-qualified trust account.
I have two large files of correspondence and many, many e-mails from the guy who took my money.... promising me the moon. I've hired a detective to check out the company... everything looked OK. I filed a complaint with Division of Corporate Securities in Salem, Oregon... I filed a complaint against the insurance broker (also in Salem) and they've never even taken his license away. I've filed a complaint with the Securities Division in Nevada to no avail. On January 2, 2008, TCP went under & was taken over by Provident Trust Group. I've also filed a complaint with the Attorney General's office in Nevada & they had the nerve to tell me that "no evidence exists to support prosecution of this matter." I have tried contacting a securities attorney and he won't even answer me.
In May 2008, someone from the State Securities office in Nevada called me asking for certain information, which I provided. Because the money was held in Nevada, it was imperative that someone actually living in Nevada file a report, which eventually happened (some guy invested who lived at South Shore in Tahoe). At this point, the FBI was brought in & I spent 3+ hours at their Portland office giving them copies of everything I had. They are not hopeful of my ever getting any money back. I have an FBI case number XXXXX I don't hold out much hope.
Again, should I simply close out these accounts & take a loss? (CAN I take a loss)? I've tried to make this as clear as possible, but I'm sure I've left something out. I don't have extra money to hire attorneys & I just don't know how to get it through to someone (the IRS) that there's no money in this account & I can't take any distributions.