Okun facing 400 years in $126 million scam

Former Miami businessman Edward Hugh Okun is facing 400 years in prison when his two-day sentencing hearing starts Aug. 4.

Okun, 58, was convicted in March of 23 charges in a $126 million scam that victimized hundreds of people across the country.

The scam was run through Okun's now-defunct, Richmond-based businesses, Investment Properties of America and The 1031 Tax Group. It has not been disclosed why Okun moved his Indianapolis businesses to Richmond in 2005.

In August 2005, Okun used The 1031 Tax Group to begin acquiring six other 1031 exchange companies, which are designed to temporarily hold money from clients' real estate sales, deferring their capital-gains taxes under Section 1031 of the tax code.

Authorities say that during the same month he started buying the companies, Okun began raiding the client accounts, to buy more exchange companies to keep the scheme running, as well as for personal reasons.

According to court records, there are 232 undisputed victims and 200 other potential victims. -- Frank Green