KLAS-TV Channel 8 News Las VegasI-Team: CEO of Collapsed Financial Firm Caught on Tape
Donald K. McGhan is the former CEO in the collapse of Southwest Exchange 1031.
At least $83 million in customers' money is still missing after the collapse of a Henderson financial firm.
Now, the I-Team has obtained an answering machine message left by the former head of the company on the last business day before it closed its doors.
Southwest 1031 Exchange held money during real estate transactions so customers could defer paying federal taxes.
One customer, Wayne Albritton of Palm Springs, had expected a $433,000 wire transfer to go through but it never did.
Company CEO Don McGhan called the Albritton's home answering machine to explain why the transfer had not occurred. According to Albritton's answering machine, the call came through at 2:27 p.m. on Jan. 26. The answering machine recorded the calling number as 454-1031, which is the former phone number for Southwest 1031 Exchange.
Answering machine message: "This is Don McGhan from 1031, uh, Southwest 1031."
The message was left on Friday, Jan. 26. By the following Monday, Southwest 1031 Exchange had closed its doors.
Answering machine message: "Uh, the... the wire for your transaction today was all set up, but uh, didn't end up going because of some screw up, uh, with, uhm, the coordination between the, uh, electronic wire transfer, uh, instructions over to, uh, our bank and, uh, we're all set up to do that Monday morning."
Wayne Albritton says the call was heartbreaking, "When you've got that much of your life savings in jeopardy, Mark, that's hard earned money."
McGhan then makes this cautionary announcement on the answering machine:
Answering machine message: "So we recognize that you... you, uh... want, you know... feel... feel, uh, violated and want to do something, um, but if, if we get [coughs], if we get, uhm, uhm, people involved, uh, it is going to screw up going Monday morning. So let's not -- let's just be patient for it."
At the end of the call, McGhan promises to call back but Wayne Albritton says he never did.
Answering machine message: "So it's Don McGhan [coughs] Southwest 1031 Exchange. OK?"
The I-Team did put in a call to McGhan's personal attorney -- Mark Dzarnoski. We explained in detail to his assistant that we had this audiotape and did plan to broadcast it. We did not receive a reply from Dzarnoski to our request for comment.
