Syndicated Conservation Easements Investment Loss Lawyer

Have you faced financial losses due to investing in conservation easements? At Erez Law, we focus on helping investors like you recover losses from brokerage firms. Our investment fraud lawyers are currently investigating whether brokers and investment advisors withheld key acts and failed to conduct adequate due diligence related to syndicated conservation easements before recommending them to investors.

With a track record of recovering over $200 million from brokerage firms for our clients, Erez Law stands ready to fight for your rights. We have represented over 1,000 clients and bring a wealth of knowledge and successful strategies to the table. Contact us for a free initial consultation to learn how we can help with your investment losses from conservation easements.

The Complexity of Conservation Easement Investments

A conservation easement is a legal agreement to keep a parcel of land in its natural state, preventing future building or industrial use in exchange for certain tax benefits. This means that once someone places a conservation easement on a property, the land must remain as it is. This type of arrangement allows for the preservation of the land for ecological, historic, or scenic reasons.

One of the leading reasons to invest in a conservation easement is the tax deduction. When you allow a conservation easement on your property, the government allows you to deduct the value of the land donation from your taxes. Through this arrangement, property owners can lower their tax bill by agreeing not to develop the land. This tax benefit often motivates landowners to participate in these investments, which allow them to support environmental conservation efforts while also receiving a financial advantage.

Syndicated Conservation Easements

A syndicated conservation easement involves a more complex arrangement than a typical conservation easement. The investment and tax considerations often go beyond the straightforward conservation goals of traditional easements. In a syndicated conservation easement arrangement, a group of investors pools their resources to purchase a property with the intent to place a conservation easement on it. The primary goal is to obtain tax benefits from donating the easement.

The investors in a syndicated conservation easement typically form a partnership or another type of legal entity to buy the land. Once the conservation easement is placed on the property, the group claims the tax deduction for the donation of the easement based on the appraised value of the conservation easement. The tax deduction then passes through to the individual investors, proportional to their initial investment in the land purchase.

However, syndicated conservation easements have come under scrutiny and have been flagged by the Internal Revenue Service (IRS) as potentially abusive tax shelter scams. Syndicated conservation easements often involve aggressive appraisal practices to maximize the declared value of the conservation easement and the tax deductions for the investors.

Unscrupulous brokers have lured many investors into syndicated conservation easements with promises of outsized tax deductions without fully disclosing the risks involved. Because the IRS has increased its scrutiny of these investments, many investors have been subject to audits of the tax deductions they claimed. As a result, some investors have faced unexpected tax liabilities, penalties, and interest on deductions that were disallowed. This has left many investors with out-of-pocket losses, not only from their initial investments but also from the financial repercussions of the audits.

Conservation Easements as Regulation D Private Placements

Conservation easements as Regulation D private placements involve a more specific setup under U.S. law, allowing these investments to occur without registering with the Securities and Exchange Commission (SEC). These investments come with certain risks, especially when brokers do not provide necessary disclosures and details to investors.

When Conservation Easements Are Unsuitable Investments

Investing in conservation easements comes with risks, but these risks can be higher due to complex tax rules and IRS scrutiny. Despite these risks, some broker-dealers have recommended these investments because they can earn large commissions from them.

Broker-dealers are required to conduct adequate due diligence and a suitability assessment before recommending investments to their clients. Adequate due diligence involves conducting independent research on material aspects of the investment, identifying potential risks of the investment, considering and mitigating conflicts of interest, and addressing and resolving concerns for their clients. They must also provide appropriate disclosures to investors.

Regrettably, some brokerage firms and investment advisors did not adequately disclose the material aspects of the offerings and did not investigate red flags, including significant risk of the IRS disallowing tax deductions, as well as concerns regarding land appraisals.

Recommending unsuitable investments violates a broker-dealer’s obligation to ensure that all their investment recommendations are suitable for their clients. Before recommending any investment, broker-dealers must consider your financial status, investment objectives, and risk tolerance. When they fail to do this, they’re not meeting their suitability requirements.

If you’ve lost money in a conservation easement investment that wasn’t right for you, you may have legal options. You can pursue recovery of your investment losses through arbitration if your broker-dealer did not properly assess the suitability of the investment for you. This process can enable you to recover some or all of the money you’ve lost due to unsuitable investment advice. A knowledgeable investment fraud lawyer can guide you through your options for recovery.

Erez Law is currently investigating the following conservation easement investments:

The IRS is auditing hundreds of conservation easements and taking the position that the deductions claimed are invalid. Investors may be responsible for taxes due, penalties up to 40%, and interest. These losses may be recoverable in an action against the brokerage firm or advisor that recommended the conservation easements.

If you invested in conservation easements on the advice of your broker or investment advisor and took a charitable contribution deduction that is now being disallowed, you may be able to recover your losses.

How a Conservation Easement Attorney Can Help

Investors have retained Erez Law to recover losses caused by investment advisors who recommended conservation easements as a tax mitigation strategy. Erez Law represents investors whose conservation easements have been subject to audit by the IRS and whose charitable deductions have been disallowed by the IRS and state tax authorities. In certain cases, our clients have had to pay back taxes, interest, and/or fines. If you are in a similar position, Erez Law is available to represent you in recovering such losses.

Here are ways a lawyer can help you with your case and work toward recovering your losses:

• Reviewing all your investment documents thoroughly
• Identifying any misrepresentations in investment proposals
• Evaluating the suitability of investments for your financial situation
• Gathering evidence to support your claim of fraud or negligence
• Interviewing witnesses who have relevant information
• Consulting financial experts to assess the investment’s value and risks
• Filing legal claims against the broker-dealer or advisor responsible for the unsuitable recommendation
• Negotiating with the opposing party for a fair settlement
• Representing you in arbitration proceedings
• Challenging any unjust tax penalties imposed due to the investment
• Communicating with regulatory bodies on your behalf
• Explaining your rights and options in clear terms
• Seeking fair compensation for your losses
• Handling all legal paperwork and filings efficiently
• Offering support and guidance throughout the legal process

If you invested in conservation easements without understanding the risks associated with your investment, you may be able to recoup your losses. Our team of financial securities attorneys has experience with FINRA arbitration and AAA arbitration, and we know how to hold brokerage firms and advisors liable for their indiscretions. Contact our firm by calling (888) 840-1571 to speak with one of our attorneys about filing a conservation easements investment losses lawsuit.

Contact Our Conservation Easement Lawyers Today for Help Recovering Compensation

If you have experienced investment losses due to investing in syndicated conservation easements, we are here to help. We are not afraid of taking on the largest firms, and we can and will combat some of the largest brokerage firms in the United States. Count on our experience to successfully take you through the FINRA arbitration process.

Please call us at (888) 840-1571 for a free consultation or complete our contact form to investigate your recourse for losses in conservation easement investments. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations, and institutions in claims against brokerage firms, banks, and insurance companies. If you have more questions about investment fraud, you can visit our securities fraud frequently asked questions page, or contact our firm to speak with one of our qualified fraud attorneys.