Tribal Tax Credit Investor Alert | Goodman & Nekvasil, P.A.

🚨 Investor Alert: Beware of Fraudulent “Tribal Tax Credit” Schemes

Goodman & Nekvasil, P.A. is seeing a disturbing rise in investor schemes built around so-called “sovereign tribal tax credits.” These credits are being sold to unsuspecting high-net-worth individuals as a way to reduce federal tax liabilities—often at steep discounts (e.g., 60 cents on the dollar). But here’s the truth:

❌ These Credits Do Not Exist Under Federal Law.

According to the U.S. Department of the Treasury and the IRS, there is no such thing as a federal “tribal tax credit” that can be used to offset personal or corporate income taxes. In fact, both agencies have explicitly warned investors that these credits are not recognized by the U.S. tax code and are not valid for federal tax filings.

🕵️‍♂️ What’s Really Happening

Companies like White River Energy Corp. have been marketing these fictitious credits through a network of tax advisors, promoters, and referral agents—some of whom are former political figures or registered investment professionals. These promoters often:

Claim to have joint ventures with Native American tribes.
Offer credits at a steep discount (e.g., buy $1 million in credits for $600,000).
Provide no IRS rulings, no formal Treasury guidance, and no binding tax opinions.
Use vague “sovereign immunity” language to avoid scrutiny.
Require investors to sign non-disclosure agreements (NDAs) that suppress red flags.

In several cases, investors have attempted to apply the credits on their tax returns—only to face IRS rejection, back taxes, penalties, and the risk of being audited.

⚠️ Ongoing Investigations

This issue has caught the attention of U.S. Senators, the IRS, and tribal governments. The Senate Finance Committee has launched an investigation, and whistleblower evidence suggests the alleged scheme may be both criminal and civilly actionable.

Several investors have already filed lawsuits to recover losses, and there is growing momentum for regulatory enforcement.

🛡 What To Do If You’ve Already Invested

If you believe you may have purchased these credits:

Gather all documents: promotional materials, emails, NDAs, payment confirmations.
Contact Goodman & Nekvasil, P.A.
You may have the right to:
- File a FINRA arbitration claim if the investment was sold through a broker registered with a broker-dealer.

Call 800-500-4442 if you are concerned about your investment in White River Energy Corp.

Call 800-500-4442 if you think that you have received unsuitable investment recommendations from your adviser.

White River Energy Corp. Investigation and the Risks of Alternative Investments

Many investors are not fully aware of the problems and risks associated with illiquid, high risk, alternative investments when they purchase them.

Investments are often riskier and more complicated than traditional investments. These funds are only suitable for high net worth, sophisticated investors.

Liquidity Issues and High Sales Commissions

Alternative investments can face several liquidity issues due to their unique characteristics and structure.

Another problem often associated with alternative investments is the high sales commissions brokers typically earn for selling them. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market.

Unfortunately, in many cases, the high sales commission may influence unsuitable investment recommendations.

Broker Due Diligence

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.

If you believe that your investments in White River Energy Corp. may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action.

There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. If we don’t recover money for you, we charge no attorney’s fee.

Goodman & Nekvasil, P.A. has recovered more than $400 million on behalf of victimized investors. If you lost money on investments in unsuitable investments and would like your case evaluated by a securities attorney, please contact us.

Some of the information in this blog post was obtained from the SEC and FINRA on 7/16/25. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442

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