National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who recommended unsuitable conservation easement investments through Forsythia Group, LLC. Syndicated conservation easements have recently been labeled by the IRS as one of the “worst tax scams ever created.” These transactions are now under intense regulatory scrutiny following high-profile prosecutions and legislative reforms targeting fraudulent tax shelters.
Based on our investigation, we believe many investors may have been misled about the risks of conservation easement investment strategies. If your financial advisor recommended Forsythia Group conservation easements, or any other conservation easement strategy that resulted in investment losses, you may be eligible for a financial recovery through the filing of a FINRA arbitration claim.
If you suffered losses in Forsythia Group Conservation Easement investments, or any other investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes at (888) 997-9956 or investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is currently representing investors in arbitration claims against investment firms that recommended unsuitable investments in Forsythia Group. The law firm is currently investigating brokerage firms around the nation that marketed and sold conservation easements to their customers as tax shelter investment opportunities.
KlaymanToskes’ investigation has led the law firm to believe that Forsythia Group’s conservation easement offerings were marketed to investors as vehicles for generating large charitable deductions under Section 170(h) of the Internal Revenue Code. Financial advisors and their firms may have misrepresented the risk of IRS scrutiny, audit exposure, and the legality of these tax deductions, resulting in substantial financial liabilities for investors.
Forsythia Group, LLC offered investors the opportunity to participate in conservation easement partnerships such as Aspen Valley Investments 2018 III, LLC. These arrangements purportedly aimed to generate large charitable contribution tax deductions by placing conservation easements on land and assigning high appraisal values to those easements, often supported by development potential that was speculative or unlikely to materialize. These deductions were then allocated to investors through LLCs, promising them 4x–5x returns on their capital in the form of charitable tax write-offs. However, the IRS has closely scrutinized these transactions and questioned both their valuation methodologies and genuine conservation intent.
The IRS has aggressively targeted syndicated conservation easements as “abusive tax shelters.” These investigations have led to audits, litigation, and, in many cases, disallowed deductions with severe consequences for individual investors.
According to federal prosecutors, these tax shelters have cheated the U.S. Treasury out of more than $36 billion, and enforcement is ongoing. Over 28,000 investors are under review for more than $21 billion in claimed deductions, many of which were generated through questionable land appraisals and partnerships.
In the case of Forsythia’s 2018 partnership, the IRS disallowed all claimed charitable contribution deductions. Through a centralized audit regime established by the Bipartisan Budget Act of 2015, the IRS pushed out tax liabilities directly to individual investors—including back taxes, interest, and penalties.
To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you suffered losses in Forsythia Group, LLC, or any other investment losses, you are encouraged to contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in Forsythia Group Conservation Easement investments. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable Forsythia Group Conservation Easement investments, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.