ParfumGigi@aol.com

Feb 6, 2007 09:11 PM EST

The losses from the collapse of a Henderson financial company could top $83 million. That's the estimate from attorneys after a series of hearings in District Court Tuesday.

At least nine lawsuits have been filed over the collapse of the company called Southwest 1031 Exchange.

One attorney says in court documents this could turn out to be one of the largest losses of consumer funds in American history. A judge appointed a point-person to begin assessing the status of the now-defunct company called a "receiver" on Tuesday.

When Southwest 1031 Exchange closed its doors last week, court filings now say at least 75 customers had money with the company.

While an exact total may not be known for weeks, estimates are the potential loss could top $83 million. Jack Close is one of the victims.

"I believe that the owner of Southwest has hidden the money somewhere," Close said.

Close and others had money with the company in order to avoid paying federal taxes as they exchanged real estate properties.

"I am here with my attorney to try to determine the best way to get some of our funds back that was put in trust with Southwest Exchange, Close said.

At times, no fewer than 11 attorneys were appearing simultaneously in front of two separate judges at the Regional Justice Center. One group of real estate investors alone has $22 million on the line.

Attorney Terry Coffing says Tuesday's court order -- to appoint a so-called "receiver" -- is a critical first step.

"A receiver is literally going to stand in the shoes of the owner. He is going to take possession of the building, he's going to take possession of all their bank accounts, assets, books, records, and he's going to report back to the court about what may or may not have happened to the money," Coffing said.

Named in many of the complaints is Donald McGhan, the chairman of Southwest Exchange. Nevada Secretary of State records show McGhan has several other local business interests including a company called Medicor, with offices on South Decatur Blvd., and makes plastic surgery products.

The company's web site was taken down this week and a press release says McGhan resigned as chairman late last month.

Attorneys are now pursuing a possible link between McGhan's other businesses and Southwest Exchange.

Terry Coffing said, "We believe that the money may have gone from Southwest into some other corporation. We should know more in the next few days to a week."

An attorney representing Donald McGhan was in court Tuesday. Mark Dzarnoski would not agree to an on-camera interview but he did tell the I-Team McGhan himself is in favor of Tuesday's court decision to appoint a "receiver."

As for where the missing money is, Dzarnoski would only say Southwest 1031 Exchange did have some financial problems but that was the extent of his comments.

According to documents filed in court, some clients of the business began to have suspicions about the company as early as last November.