The federal government losing $3 billion dollars a year on account of Conservation Easements appears to be a finding of the Brookings Institution based on their study pertaining to 2014. The amount is expected to have increased every year after that.
Based on the Brookings Institution report, and on the belief that Syndicated Conservation Easements are being used by certain taxpayers to get tax benefits even greater than the amount of their investment, has led to an investigation being launched by the Senate Finance Committee on the 27th of March, 2019.
What is a Syndicated Conservation Easement?
A Syndicated Conservation Easement is an investment in the nature of a private placement, that assures investors up to 4.5x times their investment as tax deductions.
The sale of syndicated Conservation easement could be through one of these two most common channels:
- Independent broker-dealers
- Syndication creating CPAs and attorneys (they have high commissions and fees)
Provisions pertaining to Conservation Easement are a part of the tax code and included there for legitimate reasons.
IRS action
Over the last three years, Syndicated Conservation Easements have been investigated by the Internal Revenue Service (IRS). The aspect they are apparently investigating is if the valuation and appraisal of the underlying properties are being done accurately. It also appears that investors are receiving deductions as contributions towards charitable organizations, for significantly large amounts.
Investors who have got deductions of 2.5x times their investment from charitable organizations could be facing tax audits in the near future. Of course, if discrepancies are found, they could also be in for a revised tax bill.
The Finance Committee will also consider the situation and decided on action to be taken to fix the problem for the future.
Investor protection
Any investment offered by broker-dealers to clients has to be consequent to due diligence through which they assure themselves that the offered investment is suitable for that client in terms of his investment profile, objectives, age, experience, and net worth, at the very least.
Failure to do so, or failure to adequately disclose the risks involved, or making unsuitable recommendations, could lead the broker to face possible Financial Industry Regulatory Authority (FINRA) arbitration claims.
Potential securities fraud claims of having unsuitably sold Conservation Easements to investors are being investigated by Haselkorn & Thibaut, a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with locations in Florida, New York, Texas, Arizona & North Carolina.
You are invited for a free consultation with one of their securities attorneys if you have concerns about your investment in a Conservation Easement (tax shelter land deal) and the possible recourse available in case of losses. You can reach them at 1 888-628-5590 or visit their website.
Syndicated Conservation Easement Lawsuits & Investigation
The Haselkorn & Thibaut is investigating potential claims against sales agents that sold the following conservation easement investment offerings, among others:
- Zorn Island Investments
- Zenith Aggregates Partners
- Zebra Creek Rock LLC
- Yield Rock Group
- Yellowhammer S&G Group
- Yellow River Investors
- Yankee Landing Holdings
- Yacht Creek Investments
- White Sands Village Holdings
- White Path Investors
- White Oak Investments
- West Lake Investments
- Waterway Grove Holdings
- Wahoo River Investments
- Vista Hill Investments
- Vineyard Ridge Investors
- Vibrant Minerals Investments
- Upland Creek Partners
- Union Creek Investments
- Two Chip
- Two Chip Investors
- Toscano Investments
- Tom’s Mountain Creek Investments
- Timothy Investors
- Tick Creek Holdings
- TH 28 Partners
- Tennessee Ranch Estates Investors
- Tennessee Branch Partners
- Tater Creek Investments
- Tarpon Creek Investments
- Tanyard Investors
- Sycamore Fork Investments
- Sunfish Cove Group
- Strategic Real Estate Opportunity Fund III
- Storey Hollow Investments
- Sterling Land Partners
- Spring Hill Partners
- Spring Creek 1600 Acquisitions
- Spade Rock Partners
- Southeastern Argive Investments
- South Quail Woods Investors
- South Bay Cove Holdings
- Shurling Investments
- Seven Hawks Investments
- Seavista Resort Holdings
- Sanibel Resort Holdings
- Sand Valley Investors
- Salt Marsh Holdings
- Sailfish Cove Group
- Roscoe Road Investors
- Rocky Comfort Creek Investors
- Rocky Branch Investments
- Rock Spring Investors
- Roaring Florida Acquisitions
- Roan Creek Investments
- Riverside Preserve Holdings
- Rivershore Sand Investors
- River West SC
- River Trace Resort Holdings
- River Ridge Retreat Investments
- Rising Rock Partners Investments
- Riddle Aggregates Group
- Richland Creek Investors
- Reliable S&G Group
- Regional Minerals Partners
- RDM Land Holdings
- Ranch Springs Investors
- Raisal Holdings
- Rabun Gap Partners
- Rabbit Bar Point Investments
- Quorum Holdings Partners
- Queen’s Cove Holdings
- Quality Stones Group
- Quality Minerals Partners
- Quail Rock Group
- QM 40
- Preservation Group
- Pleasant Ridge Investors
- Piney Island Investors
- Picayune Pearl Aggregates Investors
- Peeksville Investments
- Payne Creek Investors
- Parkerson Sands Investments
- Parkerson Church Reserve Investments
- Park Lake III
- Paoli Investors
- Palmetto Waters Group
- Palmetto Minerals Investors
- Pallur Investors
- Otter Rock Investments
- Orange Woods Partners
- Orange Stone Group
- Old Durrand Investments
- Oconee Quarry Investors
- Oconee Landing Investors
- Ocean Grove Resort Holdings
- Oak Bayou Group
- Nottely River Partners
- Northwest VII Investments
- Northwest VI Investments
- Northshore Property Investments
- North Unity Henry 92 Investors
- North Donald LA Investors
- North by Northwest II
- North Bay Cove Holdings
- Norma Dean I Investors
- NATRSC Investments
- Nassau River Partners
- Myrtle West Resort Holdings
- Monterry Cove Holdings
- Mill Creek Investors
- McGill Investors
- Mattock Holdings Group
- Matterhorn Property Investors
- Marchette Investments
- Manatee Minerals Group
- Magnolia River Group
- Magnolia Bay Resort Holdings
- Lowland Creek Partners
- Low Angle Group
- Longwood Preserve Investors
- Locust Creek Investors
- LMS Grande Pointe
- LM Bass Partners
- Little Satilla Investors
- Little River Partners
- Little Pumpkin Creek North Investments
- Little Pumpkin Creek Investors
- Little Pumpkin Creek Investors
- Little Horse Creek
- Little Cedar Stands Investments
- Lion’s Gate Investments
- Lexington Property Investors
- Leach Road East
- Lavis Properties Investors
- Laurel Creek Investors
- Lamstall Investors
- Lakeshore Resort Holdings
- KR Stone Group
- Kinchafoonee Properties
- KC Aggregates Group
- Jubilee Investment Holdings
- Jones County Quarry Investors
- Jet Rock Partners
- JC Aggregates Partners
- Jackson South Investments
- Jackson River Partners
- Jackson North Investments
- Ivery Branch Investors
- Iris Partners
- Inshore Group
- Imperial Aggregates Group
- Igneous Rock Group
- Huston Minerals Partners
- Horshoe Bend Investors
- Hornet’s Nest
- Hillside View Partners
- Hazel Hollow Investments
- Harrow Aggregates Partners
- Harris Top Investors
- Harmony Road Investors
- Harmon South Investors
- Harmon North Investments
- Harmon INV
- Hard Rock Partners
- Halyard Holdings Group
- Gulf Land Investment Partners
- Gulf Land Group
- Gretsch Investments
- Greenview Group
- Green Valley Investors
- Green Cove Group
- Gray Mountain Investors
- Glady Fork Partners
- Ginn Creek Investments
- Giant Aggregates Partners
- Georgetwon Riverfront Partners
- Galley Resources Partners
- Fork
- Fork Creek Partners
- Forestar Investors
- Flint River Rock & Timber Investments
- Field View Group
- FG River Partners
- FCT Investments
- Farm River Partners
- Fantail Holdings Partners
- Falling Rock Group
- Emerald Property Investors
- Emerald Acquisitions 2017
- Emerald Acquisitions 2016
- Emerald Acquisitions 2015
- Emerald Acquisitions 2014
- Elbow Creek Group
- Edge Rock Partners
- Echelon Waters Group
- Dynamite Creek Partners
- Duck River Investments
- Dry Mill Creek Investments
- Dry Creek Partners
- Dover Cliff Partners
- Dome Mantle Partners
- Dixie Lake Investments
- Diamond Grande Resort Holdings
- Dev X Investment 2015
- Desoto Investors
- Derrydown Investors
- Delta Sand Investors
- Deer Valley Group
- Deep Green Investments
- Daniel Creek Investments
- Cypress Rock Group
- Cypress Cove Marina Holdings
- CXI Properties
- Cub Creek Reserve Investments
- Crockett Investors
- Cristobal Key Holdings
- Crimson S&G Group
- Crestlawn Investors
- Cox Point Plantation Investors
- College Creek Investors
- Coastavista Palms Holdings
- Clinton Investments
- Chimney Rock Group
- Cherry Rock Group
- Cherokee 389 Investments
- CGP Net Lease Mezz Equity I
- Centerland Group
- Cayo Marsopa Holdings
- Cason Investments
- Carter Investors
- Carl Parker 52 Investors
- Carey Station Investors
- Cape Fear Pointe Holdings
- Canary Creek Partners
- Camellia Station Holdings
- Brushy Hollow Investments
- Brush Creek Holdings
- Browndale Plantation Reserve Investments
- Broadmoor Quarry Investors
- Broad River Investors
- Briar Patch Investments
- Brand Rock Investments
- Bradford Investors
- Bonlee Investment Properties
- Blue Springs Investors
- Blue Ridge Valley Investments
- Big Hill Partners
- Big Anvil Partners
- Bienville 75 Acquisitions
- Bickford Farm Investments
- Berkley Road Investors
- Benton INV
- Belvoir Investors
- Belle Harbour Resort Holdings
- Bellavista Grove Holdings
- Beech Springs Resort Holdings
- Beaverdam Creek Investors
- Bear Creek Timberland Investments
- Bear Creek Investors
- Bear Creek Investors
- Bayou Sand Investors
- Battelle Investment Group
- Bates Investments
- Basin Timber Holdings
- Basin Mountain LLC
- Barn Creek Partners
- Bama Soil Partners
- Azalea Bay Resort Holdings
- Avalon Resources Group
- Ash Resources Group
- Ardan Investors
- Arcadian Quay Holdings
- Aquatic Creek Group
- Anderson Pointe Investments
- Albero Investors
- Adam Smith Ventures
- 830 Oconee
- 191 Partners LP
- 15th Street Partners
