EcoVest Capital Complaints, Conservation Easement Losses & Lawsuits | Updated July 2026
The IRS announced in May 2026 what it describes as a final settlement opportunity for taxpayers who invested in syndicated conservation easements, including offerings sponsored by EcoVest Capital, Inc. More than 1,100 syndicated conservation easement disputes are reportedly pending — roughly 740 in U.S. Tax Court and approximately 400 more under IRS examination — and eligible partnerships will receive settlement letters on a rolling basis with a 90-day window to accept. Investors who decline face continued litigation, near-total disallowance of their claimed deductions, and penalties of up to 40 percent.
The White Law Group continues to investigate potential securities claims involving broker-dealers and sales agents who recommended EcoVest Capital conservation easement investments to their clients. If you suffered losses in an EcoVest offering, our FINRA arbitration attorneys may be able to help you recover damages from the brokerage firm that sold you the investment.
What Are Syndicated Conservation Easements?
Syndicated conservation easements are private placements in which a sponsor forms a partnership or LLC to acquire land, donate a conservation easement restricting development, and pass a charitable contribution tax deduction through to investors. Promoters marketed these deals with the promise of deductions worth four to four-and-a-half times the amount invested — a return generated not by the land itself but by appraisals valuing the property at many multiples of its purchase price.
The IRS designated syndicated conservation easements as listed transactions, placed them on its “Dirty Dozen” list of tax scams, and has audited these deals aggressively. A bipartisan Senate Finance Committee report described the arrangements as retail tax shelters that let taxpayers buy tax deductions. In December 2022, Congress passed legislation as part of the SECURE 2.0 Act limiting the deduction for partnership conservation contributions to 2.5 times the partners’ relevant basis, effectively shutting down new syndicated deals going forward.
The DOJ Lawsuit Against EcoVest Capital
In December 2018, the Department of Justice filed a civil complaint in the U.S. District Court for the Northern District of Georgia against EcoVest Capital, its principals, and an affiliated appraiser, alleging they organized, promoted, and sold at least 96 conservation easement syndicates that reported more than $2 billion in tax deductions from what the government called overvalued and improper conservation contributions. An amended complaint reportedly put the figure at 58 deals generating nearly $3 billion in deductions between 2013 and 2018 — an average write-off of $4.39 for every dollar invested.
The case settled in March 2023. The court entered a permanent injunction barring EcoVest from any future involvement in organizing, promoting, or selling investment programs involving conservation easement deductions. EcoVest did not admit wrongdoing.
The settlement did not create any restitution fund for investors. According to the Department of Justice, investors in EcoVest syndicates remain individually liable for the federal taxes they reduced through disallowed easement deductions, plus accrued interest and potential penalties — on top of the money they paid to purchase the investment itself.
Criminal Convictions and Prison Sentences for Easement Promoters
While the EcoVest case was resolved civilly, federal prosecutors have pursued criminal charges against other syndicated conservation easement promoters. In January 2024, promoters Jack Fisher and James Sinnott were sentenced to 25 and 23 years in federal prison, respectively, for a scheme that sold more than $1.3 billion in fraudulent tax deductions using inflated appraisals and backdated documents. The two were ordered to pay a combined total of nearly $900 million in restitution, and multiple CPAs, attorneys, and an appraiser connected to the scheme have pleaded guilty.
Tax Court Rulings Have Gone Badly for Investors
The U.S. Tax Court has ruled against syndicated conservation easement partnerships in case after case, frequently allowing only a small fraction of the claimed deduction and sustaining the 40 percent gross valuation misstatement penalty — one of the most severe civil penalties in the tax code. Judges have described the appraisals in these deals as “ludicrous” and untethered from reality, and in March 2026 the Eleventh Circuit affirmed a Tax Court decision rejecting more than $36.9 million in claimed deductions along with the associated penalties. The Tax Court has also warned that taxpayers and attorneys who continue to press implausible valuation arguments may face sanctions.
The IRS’s 2026 Settlement Initiative
On May 13, 2026, the IRS announced a new time-limited settlement initiative — its fifth since 2019 — for eligible partnerships involved in syndicated conservation easement disputes. Under the reported terms, the claimed charitable deduction is eliminated and replaced with a smaller deduction based on the cash actually invested, with a penalty of 10 percent of the additional tax owed for those who accept within the 90-day window. A 45-day grace period follows at a 20 percent penalty, after which the IRS intends to proceed to trial seeking the full 40 percent penalty. The IRS has indicated this will be its last settlement offer of this kind.
Risks of Conservation Easement Investments
For the retail investors who purchased these deals through their financial advisors, the damage extends well beyond a lost deduction. Investors in syndicated conservation easements may face:
Disallowed deductions and back taxes. The IRS has challenged billions of dollars in deductions, and courts have overwhelmingly sided with the government. Investors owe the taxes their deductions eliminated, plus interest that has been accruing for years.
Substantial penalties. Gross valuation misstatement penalties of 40 percent are routinely sustained, and reasonable reliance on professional advice is generally not an available defense in these partnership-level cases.
Total loss of invested capital. The cash paid to purchase units in an easement syndicate is typically unrecoverable through the tax system. No SEC or DOJ disgorgement fund exists for conservation easement investors.
Illiquidity and lack of control. As private placements sold under Regulation D, these interests have no public market, and investors have no ability to exit or influence the partnership’s decisions.
Broker-Dealer Liability for Selling EcoVest Investments
EcoVest offerings, such as the EcoVest Total Return Fund and dozens of property-specific syndicates, were sold to investors through FINRA-registered broker-dealers, often with substantial commissions attached. Brokerage firms are required to perform reasonable due diligence on any private placement they offer and to ensure that each recommendation is suitable — or, for recommendations after June 2020, in the customer’s best interest under Regulation Best Interest — based on the investor’s age, tax situation, risk tolerance, net worth, and investment experience.
A tax shelter promising deductions worth multiples of the amount invested, dependent on appraisals the IRS had publicly identified as abusive, carried risks that many selling firms may not have adequately investigated or disclosed. Broker-dealers that failed to conduct reasonable due diligence, misrepresented the risks, or recommended these deals to investors for whom they were unsuitable can be held liable for the resulting losses in a FINRA arbitration claim. Because the DOJ settlement and IRS enforcement provide no recovery fund, arbitration against the selling firm may be the most direct path to recouping losses.
How to Recover Conservation Easement Investment Losses
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago and Seattle. Our attorneys have represented investors in hundreds of FINRA arbitration claims involving unsuitable recommendations of high-risk private placements and alternative investments.
If you suffered losses in an EcoVest Capital conservation easement investment or another syndicated conservation easement, please call The White Law Group at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions (FAQs)
1. What happened in the DOJ lawsuit against EcoVest Capital?
The Department of Justice sued EcoVest in 2018, alleging the company sold conservation easement syndicates that generated billions of dollars in improper tax deductions. The case settled in March 2023 with a permanent injunction barring EcoVest from the conservation easement business. EcoVest did not admit wrongdoing, and the settlement provided no compensation fund for investors.
2. Can I recover my EcoVest conservation easement losses?
Potentially, yes. Because no government restitution fund exists, investors are pursuing FINRA arbitration claims against the broker-dealers that recommended EcoVest offerings. Firms that failed to conduct adequate due diligence or made unsuitable recommendations may be liable for the resulting losses, including lost principal and tax-related damages.
3. What should I do if I received an IRS settlement letter about a conservation easement?
The IRS’s 2026 settlement initiative gives eligible partnerships 90 days to accept terms that eliminate the claimed deduction in exchange for a reduced penalty. You should consult a qualified tax professional about the settlement decision promptly, and separately consider whether you have a securities claim against the brokerage firm that sold you the investment.
