Senate Finance subpoenas, an IRS crackdown, and discontinued offerings left many Ornstein-Schuler investors facing massive tax liabilities and lost capital. If you invested in any Ornstein-Schuler conservation easement partnership, you may have a path to recover your losses.
Haselkorn & Thibaut, P.A., operating as Investment Fraud Lawyers, represents investors nationwide in FINRA arbitration and securities litigation. Call 1-888-885-7162 for a free case evaluation.
What happened to Ornstein-Schuler conservation easements?
Ornstein-Schuler Investments LLC promoted syndicated conservation easement partnerships that allowed investors to claim large charitable tax deductions tied to land valuations. In 2019, Senate Finance Committee Chairman Chuck Grassley and Ranking Member Ron Wyden subpoenaed Matt Ornstein and Frank Schuler as part of a bipartisan probe into abusive syndicated conservation easement transactions.
The committee’s August 2020 investigative report concluded that these transactions appeared to be highly abusive tax shelters. Emails produced by Ornstein-Schuler in response to committee subpoenas showed syndicated conservation-easement transactions were quick to market and aggressively sold on the basis of tax benefits rather than legitimate conservation value.
Key takeaway: Ornstein-Schuler conservation easements were the subject of a formal Senate Finance investigation, and the resulting report identified serious red flags for investors.
Ornstein-Schuler discontinued conservation easement offerings
In a January 23, 2019 press release, Ornstein-Schuler announced it would no longer be involved in donations of conservation easements or fee simple donations. The company cited “recent developments and the uncertainty related to the conservation and gifting of property” as the reason for the decision.
While the firm stated it remained optimistic about other real estate and private equity investments, the discontinuation left existing investors exposed. Many had already claimed tax deductions that the IRS later began challenging as abusive, leading to audits, penalties, and disallowed deductions.
Key takeaway: Ornstein-Schuler exited the conservation easement business in early 2019, leaving investors to deal with the fallout.
Why Ornstein-Schuler investors may have valid loss recovery claims
Syndicated conservation easements are complex, illiquid, and high-risk private placements. Brokers and advisors who recommended these investments to retail clients may have violated securities industry rules, including:
- Unsuitable recommendations under FINRA Rule 2111
- Failure to perform reasonable due diligence before recommending the investment
- Material misrepresentations or omissions about risk, liquidity, and tax treatment
- Concentration in a single speculative tax strategy
- Breach of fiduciary duty for advisory clients
If your advisor recommended an Ornstein-Schuler conservation easement without fully explaining the risks—or without confirming it fit your investment profile—you may be able to recover losses through FINRA arbitration.
Key takeaway: Advisor misconduct, not just tax disallowance, can form the basis of a recoverable investor claim.
Ornstein-Schuler conservation easement partnerships under review
Contact our firm if you invested in any of the following Ornstein-Schuler conservation easement partnerships:
| Partnership / LLC |
|---|
| Aquatic Creek Group, LLC |
| Ash Resources Group, LLC |
| Avalon Resources Group, LLC |
| Bama Soil Partners, LLC |
| Barn Creek Partners, LLC |
| Big Anvil Partners, LLC |
| Canary Creek Partners, LLC |
| Centerland Group, LLC |
| Cherry Rock Group, LLC |
| Chimney Rock Group, LLC |
| Crimson S&G Group, LLC |
| Cypress Rock Group, LLC |
| Deer Valley Group, LLC |
| Dome Mantle Partners, LLC |
| Dover Cliff Partners, LLC |
| Dry Creek Partners, LLC |
| Dynamite Creek Partners, LLC |
| Echelon Waters Group, LLC |
| Edge Rock Partners, LLC |
| Elbow Creek Group, LLC |
| Falling Rock Group, LLC |
| Fantail Holdings Partners, LLC |
| Farm River Partners, LLC |
| FG River Partners, LLC |
| Field View Group, LLC |
| Galley Resources Partners, LLC |
| Giant Aggregates Partners, LLC |
| Green Cove Group, LLC |
| Greenview Group, LLC |
| Gulf Land Group, LLC |
| Halyard Holdings Group, LLC |
| Hard Rock Partners, LLC |
| Harrow Aggregates Partners, LLC |
| Hillside View Partners, LLC |
| Huston Minerals Partners, LLC |
| Igneous Rock Group, LLC |
| Imperial Aggregates Group, LLC |
| Inshore Group, LLC |
| Iris Partners, LLC |
| Jackson River Partners, LLC |
| JC Aggregates Partners, LLC |
| Jet Rock Partners, LLC |
| KC Aggregates Group, LLC |
| KR Stone Group, LLC |
| Little River Partners, LLC |
| LM Bass Partners, LLC |
| Low Angle Group, LLC |
| Lowland Creek Partners, LLC |
| Magnolia River Group, LLC |
| Manatee Minerals Group, LLC |
| Mattock Holdings Group, LLC |
| Nassau River Partners, LLC |
| Oak Bayou Group, LLC |
| Orange Stone Group, LLC |
| Orange Woods Partners, LLC |
| Palmetto Waters Group, LLC |
| Quail Rock Group, LLC |
| Quality Minerals Partners, LLC |
| Quality Stones Group, LLC |
| Quorum Holdings Partners, LLC |
| Regional Minerals Partners, LLC |
| Reliable S&G Group, LLC |
| Riddle Aggregates Group, LLC |
| Sailfish Cove Group, LLC |
| Spade Rock Partners, LLC |
| Sterling Land Partners, LLC |
| Sunfish Cove Group, LLC |
| Upland Creek Partners, LLC |
| Yellowhammer S&G Group, LLC |
| Yield Rock Group, LLC |
| Zenith Aggregates Partners, LLC |
If your partnership is not listed, we may still be able to help. Many conservation easement investors are only now learning the full extent of their losses.
How FINRA arbitration works for conservation easement losses
FINRA arbitration is a private dispute resolution forum for claims against brokers and brokerage firms. The process is generally faster and less expensive than court litigation. Investors can recover compensatory damages, interest, costs, and in some cases attorneys’ fees.
We handle conservation easement cases on a contingency fee basis. That means there is no attorney’s fee unless we recover money for you.
Key takeaway: FINRA arbitration is the most common and cost-effective way for investors to recover losses from a bad conservation easement recommendation.
What to expect in a free case review
When you call our firm, our investment fraud attorneys will review:
- Which Ornstein-Schuler partnership or LLC you invested in
- The broker or advisor who recommended the investment
- Whether the risks and tax consequences were disclosed
- Your investment objectives, net worth, and risk tolerance at the time
- Any IRS notices, penalties, or disallowed deductions you received
We will then explain your options and whether a FINRA arbitration claim makes sense.
Frequently asked questions
Can I recover losses if the IRS already disallowed my deduction?
Yes. A disallowed deduction is strong evidence of a flawed investment, but your claim is against the broker or firm that recommended it—not the IRS.
Is there a deadline to file a claim?
Yes. FINRA arbitration claims are subject to eligibility and statute of limitations rules. Do not wait to contact an attorney if you suspect misconduct.
Do I have to pay upfront legal fees?
No. We typically handle these cases on contingency. There is no fee unless we recover money for you.
What if I only invested a small amount?
Even modest conservation easement investments can lead to large tax penalties and financial harm. We review cases of all sizes.
Contact us today
If you invested in an Ornstein-Schuler conservation easement and lost money, contact us for a free consultation.
Phone: 1-888-885-7162
Website: investmentfraudlawyers.com
Offices: Florida, New York, Arizona, Texas, and North Carolina
Our firm represents investors nationwide in FINRA arbitration and securities litigation. Call now to discuss your recovery options.
Past results do not guarantee future outcomes. Each case is evaluated on its individual facts. This article is for informational purposes only and does not constitute legal advice.