FOR IMMEDIATE RELEASE
DATE: March 29, 2007
CONTACT: Chris Lee (702) 486-2440

Money recovered from defunct 1031 business

Las Vegas, NV – Secretary of State Ross Miller announced this morning that the initial investigation by the Secretary of State, Securities Division, has already recovered over $100,000 and an additional 2.25 million shares from accounts held by Southwest Exchange, Inc. and its principles. The most recovered in this investigation to date.

In February, investigators issued a Cease and Desist Order against several financial institutions across the Las Vegas valley where it was believed that Southwest Exchange, Inc., Donald McGhan and other principles may have transferred large sums of investors' money.

The office is continuing to analyze numerous financial records and has been able to identify various accounts held at UBS by McGhan and Southwest Exchange, Inc.

"It is an arduous process in identifying and analyzing each account investor money may have been placed in, but this initial discovery is a considerable step in the course of returning money lost by investors," said Secretary Miller.

An Eighth Judicial District Court order gives his office authority to turn over all funds and recoveries from its investigations to a receiver that will determine which victims will receive the recovered money.

As in all criminal matters, the office maintains that the allegations are merely accusations and individuals are presumed to be innocent until proven guilty in a court of law.