July 22, 2014
LAS VEGAS (AP) - Nevada State Attorney General Catherine Cortez Masto says a former Henderson investment company and its former chief have been indicted on felony embezzlement charges.
Masto said Monday that Southwest Exchange Inc. and former officer and director Nikki Pomeroy face 11 embezzlement charges and 11 felony charges of being an unlawful intermediary in a tax-free exchange.
Masto says a two-year investigation found problems with the way the company operated under Internal Revenue Service Rule 1031. The rule lets investors defer capital gains taxes if they reinvest profits from property sales.
Masto says at least 119 Southwest Exchange clients lost more than $97 million because of the alleged embezzlement.
An arraignment is set for April 9 in Las Vegas.
Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.