The Strategic Financial Alliance Lawsuit: Conservation Easement FINRA Claim
The White Law Group has filed a FINRA arbitration claim against The Strategic Financial Alliance on behalf of a group of investors from South Dakota and Iowa. According to the Statement of Claim, their broker allegedly recommended unsuitable private placements marketed as syndicated conservation easements. The claimants are seeking damages of $100,000 to $500,000. Investors who bought these deals and lost money can talk to our FINRA arbitration attorneys about their options.
What the Claim Alleges Against The Strategic Financial Alliance
The claim alleges the broker recommended illiquid, high-risk conservation easement deals without properly weighing the investors’ goals, risk tolerance, or need to reach their money. It also alleges The Strategic Financial Alliance, the FINRA member firm responsible for supervising the broker, failed to stop the recommendations.
Syndicated Conservation Easements Named in the Claim
The claim identifies these private placements as having been recommended to the claimants:
- Azul Bay Resort Holdings LLC
- Harbor Gate at Seadrift Holdings LLC
- Queen’s Cove Holdings LLC
- Waterway Gate Grove Holdings LLC
In a syndicated conservation easement, investors buy into a partnership that holds land. The partnership then donates a conservation easement on that land and passes a large tax deduction to its investors. The IRS has challenged many of these deductions, which makes the investments risky for the average investor.
Managing Partner Statement
“These are complex, high-risk deals that most retail investors have no way to evaluate on their own,” said Dax White, managing partner of The White Law Group. “We believe there may be other investors who were sold similar conservation easement investments and don’t realize they have recourse.”
Can The Strategic Financial Alliance Be Held Responsible?
Brokerage firms must supervise the recommendations their registered representatives make. If a firm fails to catch an unsuitable sale, it may be liable for the losses that follow, even if a broker made the recommendation.
Recovering Losses From Conservation Easement Investments
Investors who were sold unsuitable conservation easement private placements may be able to recover losses through FINRA arbitration. The White Law Group is looking into potential claims for other investors who bought similar investments through this broker or firm.
Contact The White Law Group
The White Law Group is a team of national securities fraud attorneys with offices in Chicago and Seattle. If you invested in syndicated conservation easements through The Strategic Financial Alliance and have losses, call (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
1. How do I file a claim to recover money I invested through The Strategic Financial Alliance?
Most brokerage account agreements typically include a pre-dispute arbitration clause, so claims like this usually go through FINRA arbitration instead of court. Many investors don’t know that clause exists, and arbitration can still lead to a monetary recovery.
2. Why are syndicated conservation easements risky for investors?
They are illiquid, so investors usually cannot sell or get their money out early. Their value also depends on a tax deduction the IRS may challenge.
3. Can The Strategic Financial Alliance be held responsible for my losses even if it didn’t approve the investment?
Yes, a firm may be liable for failing to supervise its brokers. Firms have a duty to review what their representatives recommend, and a lapse in that review can create liability.
