EcoVest Capital, an Atlanta-based company, has been linked to syndicated conservation easement investments that are now under scrutiny by the Internal Revenue Service and the Department of Justice. These private placement offerings were marketed to investors as tax-advantaged opportunities. Federal authorities have described the strategy as an abusive tax Shelter and have targeted EcoVest as a central promoter.
Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, represents investors who suffered losses after purchasing EcoVest Capital conservation easement investments through brokerage firms and financial advisors. If your advisor recommended one of these offerings and you now face tax liabilities, penalties, or lost principal, contact us for a free case review. Call 1-888-885-7162.
What is EcoVest Capital?
EcoVest Capital is a company based in Atlanta, Georgia, that developed and promoted syndicated conservation easement transactions. These arrangements allowed groups of investors to buy interests in land partnerships and claim large charitable tax deductions based on the donation of conservation easements.
The company reportedly launched dozens of partnerships across the United States starting around 2009. According to federal authorities, these deals generated more than $1.7 billion in questionable federal tax deductions. Some investors were told they could receive tax write-offs several times larger than their cash investment.
The deductions depended on appraisals that valued the land much higher before the easement restriction was placed on it than after. Federal investigators have questioned whether those appraisals reflected legitimate market values or were inflated to maximize the tax benefit.
How syndicated conservation easements work
A conservation easement is a legal agreement that permanently limits the development or use of land in order to protect its conservation value. When a landowner donates a conservation easement to a qualified organization, the donor may claim a charitable tax deduction. The deduction equals the reduction in the property’s fair market value caused by the easement restriction.
In a syndicated conservation easement, a partnership buys land, often with development potential, and then donates a conservation easement over all or part of the property. The partners claim charitable deductions based on the difference between the appraised value before and after the easement.
The IRS and DOJ have focused on deals where the claimed deduction appears far larger than the amount investors actually contributed. In one example cited by federal authorities, a land purchase of approximately $1.1 million supported a claimed charitable deduction of nearly $40 million.
Why federal authorities are investigating EcoVest
The IRS has placed syndicated conservation easement transactions on its annual Dirty Dozen list of abusive tax scams. The agency has described these deals as among the worst of the worst tax shelters because they can produce deductions that greatly exceed the amount invested.
The Department of Justice has filed civil fraud actions against EcoVest Capital, certain individuals, and related entities. The government is seeking to disallow improper deductions and recover taxes, interest, and penalties. The IRS has also examined a large number of high-risk partnerships and is challenging deductions in the Tax Court.
Investors face several potential consequences. The IRS may disallow the tax deductions, impose penalties for valuation misstatements, and require payment of back taxes plus interest. Some investors have had to liquidate assets or borrow money to cover the unexpected liability. The original investment principal may also be lost.
Brokerage firms and advisors linked to EcoVest offerings
EcoVest-sponsored conservation easement investments were sold through a network of brokerage firms and independent financial advisors. Some of the firms that reportedly marketed or sold these offerings include:
| Arkadios Capital |
| Centaurus Financial |
| DFPG Investments |
| Concorde Investment Services |
| Kalos Capital |
| Capital Investment Group |
| Center Street Securities |
| Lion Street Financial |
| United Planners Financial Services |
| The Strategic Financial Alliance |
Brokerage firms and advisors who recommended EcoVest offerings had a duty to perform due diligence. They also had to determine whether the investment was suitable for each customer. That duty included understanding the tax risks, the appraisal methodology, the liquidity of the investment, and whether the promised deductions were realistic.
When a firm fails to perform adequate due diligence or recommends a high-risk, high-commission product without proper disclosure, the firm may be liable for investor losses. Investors may have claims for unsuitability, misrepresentation, negligence, or failure to supervise.
EcoVest Capital offerings under scrutiny
EcoVest Capital used a series of limited liability companies as the investment vehicles for its conservation easement transactions. Some of the partnerships that have drawn federal attention include:
| Miramar Pointe Holdings LLC |
| Ohoopee Holdings LLC |
| Cayacoa Bay Holdings LLC |
| Harbor Gate at Seadrift Holdings LLC |
| Espiritu Shores Holdings LLC |
| Indigo Sound Holdings LLC |
| Copano Cove Holdings LLC |
| Neuse Harbor Holdings LLC |
| Hammersmith Landing Holdings LLC |
| Montego Pointe Holdings LLC |
| Cottonwood Cove Holdings LLC |
| Tortuga Trace Holdings LLC |
| Punta Vista Grande Holdings LLC |
| EcoVest Total Return Fund LLC |
| Santo Bay Resort Holdings LLC |
| Tupelo Grove Holdings LLC |
| Azul Bay Resort Holdings LLC |
| Turkey Creek Resort Holdings LLC |
| Birkdale Landing Holdings LLC |
| Cayo Dorado Holdings LLC |
| Port Quay Resort Holdings LLC |
| Del Mar Vista Dunes Holdings LLC |
| Myrtle Cove Resort Holdings LLC |
| Monterrey Cove Holdings LLC |
| Waterway Grove Holdings LLC |
Investors who purchased interests in any of these entities through a brokerage firm or advisor may have a claim if the investment was misrepresented, unsuitable, or inadequately disclosed. The specific facts of each recommendation matter, including what the advisor said about the tax benefits, the risks, and the expected returns.
Signs your EcoVest investment may have been unsuitable
Not every investor who purchased an EcoVest conservation easement has a valid claim. The key question is whether the recommendation was suitable and whether the advisor disclosed the material risks. Warning signs include:
| You were told the investment would produce tax deductions several times larger than your cash contribution. |
| Your advisor did not explain the risk of IRS audit, disallowance, or penalties. |
| The investment represented a large portion of your net worth or annual income. |
| You did not receive a clear explanation of how the land was appraised or how the deduction was calculated. |
| Your advisor emphasized tax savings rather than investment merit. |
| You are now facing an IRS audit, back taxes, penalties, or the loss of your original investment. |
If any of these signs apply, you should have your situation reviewed by a securities attorney. Time limits apply to FINRA arbitration claims, and delay can affect your ability to recover.
How losses are recovered through FINRA arbitration
Investors who purchased EcoVest conservation easements through a brokerage firm or registered representative generally cannot sue in court. Their claims must be brought through FINRA arbitration, a private dispute resolution process overseen by the Financial Industry Regulatory Authority and supervised by the Securities and Exchange Commission.
The parties present evidence to a panel of arbitrators. The arbitrators then decide whether the advisor or firm is responsible for the investor’s losses and, if so, how much must be paid in damages.
The arbitration claim can seek compensation for lost principal, disallowed tax deductions, IRS penalties, interest, and other related losses. The strength of each claim depends on the documents, the advisor’s statements, the firm’s due diligence files, and the investor’s profile.
How Investment Fraud Lawyers can help
Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, represents investors in FINRA arbitration claims involving unsuitable recommendations, misrepresentation, and failures in firm supervision. Our attorneys review account records, offering documents, and communications to determine whether a brokerage firm or advisor is responsible for EcoVest-related losses.
If you invested in EcoVest Capital conservation easement offerings through a brokerage firm or financial advisor and suffered losses, contact us for a free case review. We work on a contingency basis, and past results do not guarantee future outcomes.
Call 1-888-885-7162 or reach out online. Securities claims have time limits, so acting promptly is important.
Frequently asked questions
What is EcoVest Capital?
EcoVest Capital is an Atlanta-based company that promoted syndicated conservation easement investments. Federal authorities have described the strategy as an abusive tax Shelter and have targeted EcoVest as a central promoter.
What is a syndicated conservation easement?
It is a partnership arrangement in which investors buy interests in land partnerships that donate conservation easements and claim charitable tax deductions based on the difference in appraised land value.
Why is the IRS investigating EcoVest?
The IRS has placed syndicated conservation easements on its Dirty Dozen list and is challenging deductions that appear inflated or abusive. The DOJ has filed civil fraud actions against EcoVest and related entities.
Which brokerage firms sold EcoVest investments?
Firms linked to EcoVest offerings include Arkadios Capital, Centaurus Financial, DFPG Investments, Concorde Investment Services, Kalos Capital, Capital Investment Group, Center Street Securities, Lion Street Financial, United Planners Financial Services, and The Strategic Financial Alliance.
Can I recover my EcoVest losses?
Possibly. Investors who purchased EcoVest offerings through a brokerage firm or advisor may have a FINRA arbitration claim for unsuitability, misrepresentation, or failure to supervise.
What losses can be recovered?
Claims may seek lost principal, disallowed tax deductions, IRS penalties, interest, and other related losses caused by the unsuitable recommendation.
How do I start a claim review?
Call 1-888-885-7162 or contact Investment Fraud Lawyers online. We will review your records and explain your options at no upfront cost.
Disclaimer: Past results do not guarantee future outcomes. This page provides general information and is not legal advice. No attorney-client relationship is formed by reading this content.
There is no guaranteed recovery in any securities matter. Consult a qualified attorney regarding your specific situation.