Couple Reportedly sues after IRS Audit & Conservation Easement Losses
A California couple reportedly filed a private arbitration claim against financial advisor Ajay Gupta of Gupta Wealth Management involving conservation easement tax shelter investments last year, according to Investment News.
The couple is reportedly seeking damages due to their purchase of three conservation easement funds, GWM Capital Real Estate, Aldgate Real Estate Partners and Brentwood Real Estate Partners. Creative Planning, which owns Gupta Wealth Management is also cited as a defendant in the arbitration.
According to the article, the couple ran into problems when the IRS started to question the appraisals behind the land deals. California authorities and the IRS reportedly audited the couple, and they “lost their invested capital and were forced to repay the tax deduction — plus interest, penalties and attorneys’ fees — for a loss of $1.3 million,” according to Investment News, citing the complaint.
The respondents reportedly denied all allegations.
Filing a Complaint against your Brokerage Firm
The White Law Group continues to investigate g potential securities fraud claims involving the liability that sale agents and broker-dealers may have for improperly recommending conservation easements (tax shelter land deals) to unsuspecting investors.
For more information on the White Law Group’s syndicated conservation easement investigation please see:
Investor Alert: EcoVest Capital, Conservation Easement Investments and Senate Finance Committee Reports Findings in Conservation Easement Investigation.
Investors who received charitable contribution deductions of more than 2.5 times their investment could possibly be audited, and potentially even hit with a revised tax bill.
These syndicated conservation easements may be sold through both independent broker-dealers and directly by attorneys and CPAs who create the syndications and tend to have high commissions and fees.
Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.
Free Consultation with a Securities Attorney
If you have invested in a conservation easement (tax shelter land deal), please call The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois. To learn more about The White Law Group visit www.whitesecuritieslaw.com.
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