A major promoter of land conservation deals and six others were indicted as the Internal Revenue Service escalated a crackdown on what it says are fraudulent syndicated deals that cost the U.S. billions of dollars in taxes.
The U.S. charged Jack Fisher, an accountant and developer, with creating deals that helped wealthy investors claim at least $1.3 billion in fraudulent charitable deductions, according to an indictment unsealed Tuesday in federal court in Atlanta. The fraud involves land easements that bar development and rely on “grossly inflated” appraisals, prosecutors said.
The Internal Revenue Service is auditing at least 28,000 taxpayers who claimed $21 billion in deductions through deals like those promoted by Fisher. Prosecutors are pursuing criminal cases beyond Fisher, the first promoter indicted in a five-year crackdown.
Fisher and other promoters used brokers, accountants, lawyers and tax preparers to sell deals known as syndicated conservation easements. From 2013 to 2020, Fisher sold at least 15 such deals to generate fraudulent tax deductions for investors, the U.S. said.
“These illegal tax shelters facilitated high-income taxpayers in claiming unwarranted and inflated charitable contributions in connection with the donation of a conservation easement over land,” prosecutors said in a 135-count indictment.
Fisher attorney, Russ Ferguson, said his client broke no laws in conserving almost 10,000 acres through tax deductions authorized by Congress and approved by the IRS.
“In doing so, Mr. Fisher has not only followed the law, but has acted in conformity with IRS regulations, agency guidance, and audit guidelines,” Ferguson said in an email.
Three Atlanta accountants who worked on Fisher’s deals were previously charged: Herbert Lewis and the brothers Stein and Corey Agee.
The Agees pleaded guilty and are cooperating with prosecutors. They admitted backdating checks and documents to fool the IRS about when investments were made. Lewis was indicted in June and pleaded not guilty. Prosecutors amended his indictment to add Fisher and the other defendants.
Lewis attorney Brian Steel said his client “has maintained his innocence and we will fight the case in court.”