You May Want To Explore Whether You Have Grounds For A Broker Fraud Claim To Get Your Money Back

Shepherd Smith Edwards and Kantas is investigating brokerage firms and financial advisors who unsuitably recommended risky syndicated conservation easements (SCEs), such as those promoted by EcoVest Capital, to investors. Because these abusive tax shelters often result in total loss of principal, IRS penalties, and lost deductions, affected investors are being urged to pursue legal recovery through FINRA arbitration.

If you are an investor who suffered losses in a syndicated conservation easement (SCE) that was sold to you by a financial advisor, Shepherd Smith Edwards and Kantas Syndicate Conservative Easement Attorneys (investorlawyers.com) is here to help you explore your legal options. These are private placements that have come under scrutiny with the Internal Revenue Service (IRS), which included syndicated conservation easements on its “Dirty Dozen” tax scam list. In particular, we are looking into claims of losses involving EcoVest Capital, as well as other SCE promoters.

What Are Syndicated Conservation Easements?

• Private placements involving a sponsor who sets up an LLC or partnership.
• Promoters purchase land, inflate appraisals to exaggerate development value, and sell shares.
• The land’s development rights are sold to a land trust while generating tax deductions, typically over $2.50 for every $1 invested.
• These are very risky investments.
• The IRS has characterized SCEs as abusive tax shelters.

Why Are Syndicated Conservative Investments Risky For Investors?

• Appraisals are highly inflated, which can exaggerate tax deductions.
• When the IRS targets transactions, investors end up not only losing all of their deductions, but they may also be forced to pay penalties of 40% or higher, as well as stiff interest charges.
• Because the IRS considers SCE’s to be listed transactions, huge fines may result if disclosures and reporting requirements are not followed.
• There can be significant penalties due to gross valuation misstatements.
• Frequently, there is no profitability tied to a syndicated conservation easement.
• Promoters of these private placements have ended up in jail for fraud.
• Total loss of principal is a possibility.
• These are illiquid Regulation D private placement offerings that lack transparency.

How Do I Know If I Can Sue My Broker Over EcoVest Capital Syndicated Conservation Easement Investments?

Several years back, the US Department of Justice (DOJ) filed a civil lawsuit against EcoVest Capital, its principals, and an affiliated appraiser for their alleged organization, promotion, and sale of at least 96 syndicated conservation easement syndicates that reported over $2B in tax deductions from purportedly overvalued and improper conservation contributions. That case was amended to 58 deals with almost $3B in deductions. This litigation was settled, but investors did not get any relief.

• If you are one of the thousands of EcoVest Capital syndicated conservation easement investors, it is important that you determine whether your broker engaged in any type of misconduct or negligence when marketing and selling this private placement to you.
• Managing brokerage firm Triloma Securities is no longer registered with the Financial Industry Regulatory Authority (FINRA). However, it reportedly authorized more than three dozen broker-dealers to sell EcoVest Capital Syndicated Conservation Easement Investments. These firms include Strategic Financial Alliance, Patrick Capital Markets, and others.
• Our broker fraud lawyers are looking into these broker-dealers, as well as those that sold syndicated conservative easements from other promoters.

Fighting For Reg D Private Placement Investors

• Our skilled syndicate conservative easement attorneys can help you assess the cause of your losses. It is unlikely you will get your money back from the promoter. Actions by the DOJ or the IRS won’t necessarily help you either.
• If your broker unsuitably recommended one of these Reg D offerings, failed to fully apprise you of the risks, didn’t conduct proper due diligence, or was negligent or engaged in fraudulent behavior, you may be able to sue for damages.
• Filing a FINRA lawsuit against the brokerage firm may be what you need to do to get back your investment. Syndicate conservative easement loss claims can be complex. This is not something you want to pursue without seasoned securities lawyers who know how to protect your legal rights and maximize your chances for a full recovery.

Talk To Us About Your Syndicated Conservative Easement Losses Today

Call our Syndicate Conservative Easement Attorneys at (800) 259-9010 or fill out this online contact form.