ChapmanAlbin is investigating allegations that White River Energy Corporation promoted and sold purported federal income tax credits marketed as “Native American Federal Income Tax Credits” or “Sovereign Tribal Tax Credits.” Public reporting and statements from lawmakers indicate that federal authorities have questioned whether these credits exist under federal law, and the IRS has communicated to Senate investigators that the credits do not exist.
Why this matters to investors
- Investors may have paid substantial sums for credits they believed could reduce federal tax liability.
- If the credits are disallowed, investors can face back taxes, penalties, and interest, in addition to the loss of the purchase price and fees.
- When these strategies are sold through financial advisors or intermediaries, they can raise securities law issues such as misrepresentation, unsuitable recommendations, selling away, and failure to supervise.
What are “Sovereign Tribal Tax Credits”?
These are labels used in marketing materials for an alleged tax strategy claiming that investors can purchase transferable credits tied to federally recognized Tribal Nations and then use those credits to offset federal income taxes. For additional background and red flags, see: Sovereign Tribal Tax Credits.
Key public developments referenced by lawmakers and media
- Senate Finance Committee investigators reported that the IRS confirmed these credits do not exist and warned of penalties for taxpayers who claim non-existent credits.
- Lawmakers have publicly called on regulators to take action related to the promotion and sale of these credits, and have described a federal criminal investigation into the matter.
- Public reports and summaries of SEC filings have stated that White River reported proceeds from sales of these credits and described large claimed credit amounts tied to Tribal entities.
If you purchased these credits, consider preserving
- All marketing materials and presentations
- Invoices, wire receipts, and proof of payment
- Any “credit certificate” or documentation purporting to show issuance by a Tribal entity
- Communications with the promoter, advisor, or any referring professional
- Your tax filings and workpapers (coordinate with your tax professional)
How ChapmanAlbin can help
If a broker-dealer, registered investment adviser, insurance professional, or other financial intermediary recommended these purported credits, ChapmanAlbin can evaluate whether the recommendation involved misleading statements, omission of material risks, or failures of supervision.
If you invested in Sovereign Tribal Tax Credits through a financial professional and have questions about your options, contact ChapmanAlbin at (877) 410-8172 to discuss your situation.
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