Turkey Creek Resort Holdings Lawsuit: EcoVest Claims
Turkey Creek Resort Holdings, LLC reportedly raised more than $9.2 million for EcoVest Capital in December 2017, one year before the Department of Justice sued EcoVest over its conservation easement programs. The White Law Group is investigating potential claims against the brokerage firms that sold Turkey Creek Resort Holdings to their customers. Investors may be able to recover losses, including tax-related damages, through FINRA arbitration.
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What Is Turkey Creek Resort Holdings?
Turkey Creek Resort Holdings, LLC is a Delaware limited liability company based in Atlanta, Georgia. Its Form D lists EcoVest Capital as the managing entity. The offering was structured as a syndicated conservation easement, in which investors buy into a partnership that owns land, and the partnership donates an easement to produce a charitable tax deduction.
What investors were really buying was that deduction. Its value turned on an appraisal of how much the land would be worth if developed.
Offering Terms
Turkey Creek Resort Holdings claimed the Rule 506(b) exemption and made its first sale on December 12, 2017. The amended Form D reports $9,278,872 sold to 111 investors, with a minimum investment of $9,237.
Estimated sales commissions were $1,019,420, about 11% of the amount raised.
Turkey Creek Resort Holdings Lawsuit Investigation: EcoVest and the IRS
When Turkey Creek Resort Holdings was sold, the IRS had already classified syndicated conservation easements as listed transactions, a December 2016 designation that requires extra disclosure and invites audits. In December 2018, the Department of Justice reportedly sued EcoVest, alleging its easement programs passed inflated deductions to investors.
That case ended in March 2023, when a federal judge approved a settlement permanently barring EcoVest from deals involving conservation easement deductions. EcoVest and its executives paid $6 million and did not admit the allegations. Separately, the IRS offered easement partnerships a limited settlement window in 2026 before moving remaining cases to a new Office of Conservation Easements.
Broker Due Diligence Obligations
The Form D lists the following firms, or brokers registered with them, as receiving sales compensation for Turkey Creek Resort Holdings:
- Center Street Securities
- DFPG Investments
- G.A. Repple & Company
- Gramercy Securities
- Kalos Capital
- The Strategic Financial Alliance
- Triloma Securities
A brokerage firm has to do its own review of a private placement before recommending it. For an easement deal sold after the IRS warning, that review should have weighed how likely the deduction was to survive an audit. Firms that skipped that step, or recommended the deal to investors who couldn’t absorb an IRS challenge, may be liable for losses.
Risks of Private Placement Investments
- Tax exposure: If the deduction is disallowed, investors can face back taxes, interest, and penalties.
- Lost principal: Money paid for partnership units is generally not returned.
- Illiquidity: There is no way to sell the interests on a market.
- Commission drag: About 11 cents of every dollar raised went to sales commissions.
Recovering Investment Losses
Paying or settling with the IRS does not end the question of what your broker owes you. Investors who bought Turkey Creek Resort Holdings through a brokerage firm may be able to pursue their investment, tax-related damages, and interest from that firm.
Contact The White Law Group
The White Law Group is a national securities fraud law firm with offices in Chicago and Seattle. Our FINRA arbitration attorneys represent investors in claims involving EcoVest conservation easements and other private placements.
If you invested in Turkey Creek Resort Holdings, call (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
How do I file a claim to recover money I invested in Turkey Creek Resort Holdings?
Your claim is against the brokerage firm that sold you the investment. Most brokerage account agreements include a pre-dispute arbitration clause, so these disputes are usually heard in FINRA arbitration rather than court. Arbitrators can award damages, including tax-related losses.
What made Turkey Creek Resort Holdings risky for investors?
The investment’s value depended on an appraisal-driven tax deduction in a category the IRS had already flagged. If the deduction fails, investors can lose their money and also owe taxes, interest, and penalties.
Can a brokerage firm be liable for selling an EcoVest offering?
Yes. Firms must investigate the private placements they approve and supervise the brokers who sell them. A firm that sold this offering without a careful review of the IRS risk may be liable for failing to supervise.
