- Details
- By Brian Edwards
- Policy and Law
A Florida couple has filed a lawsuit seeking to recover $1.6 million they paid for “tribal tax credits” that federal authorities say aren’t real. The case emerges amid a Senate investigation into what lawmakers describe as a scheme that exploited Native American tribal identities to dupe investors.
Justin and Robin Daniels of Jupiter, Fla. filed a lawsuit in Palm Beach County Circuit Court on May 29, 2025, in what appears to be the first legal action by victims of what their complaint calls a “sprawling scheme” that was first reported by Bloomberg Tax in late 2024. The Bloomberg Tax investigation found that high-income investors had paid tens of millions for tax credits that the U.S. Treasury Department never authorized and that the Internal Revenue Service later confirmed were invalid.
According to the legal complaint, the couple was among numerous victims targeted with so-called “Native American Federal Income Tax Credits” or “Sovereign Tribal Credits,” which were falsely marketed as being allocated to tribes under the Indian Self-Determination and Education Assistance Act. The lawsuit names three defendants: publicly traded oil and gas company White River Energy Corp.; financial consultant Financial Gems LLC; and the couple’s accounting firm, Armanino Advisory LLC.
The Danielses’ complaint includes five counts: unjust enrichment and rescission against White River; professional negligence and breach of fiduciary duty against Armanino; and fraudulent misrepresentation and fiduciary breach against both White River and Financial Gems. The couple seeks to void the agreement and recover the $1.62 million they paid, plus additional damages totaling nearly $1.77 million.
As part of a congressional investigation into the tribal tax credits, the IRS told Senate investigators: “We can confirm that these tax credits do not exist. Taxpayers who claim credits that don’t exist are subject to penalties and possible examination. Furthermore, promoters of these credits may be subject to civil or criminal penalties. The IRS reminds all taxpayers to be aware of tax scams and encourages taxpayers to consult with a reputable tax advisor.”
How the Deal Unfolded
According to the lawsuit, the Florida couple was approached in October 2024 by Michael Anthony, principal of Tequesta, Fla.-based Financial Gems, who recommended purchasing tribal tax credits from Fayetteville, Ark.-based White River Energy as a tax-reduction strategy. On Oct. 15, they entered into a tax credit purchase agreement, paying $1.62 million for credits that were supposedly worth $2.7 million.
The agreement, filed as an exhibit in the lawsuit, shows White River claiming to sell “sovereign tax credits issued by Native American recognized tribes” through a multi-entity structure involving companies called Logistical Concepts and White River CDFI. The lawsuit alleges the Danielses received a “Sovereign Tribal Tax Credit Purchase Receipt” and an acknowledgment letter stating they had received $2.7 million in “refundable sovereign tribal trust fund tax credits” related to Indigenous economic improvement programs.
When the couple filed their 2023 federal return claiming the credits, though, the IRS denied them and imposed a $149,009.86 penalty, according to the complaint.
The lawsuit also claims that their accountants at Armanino failed to investigate the credits' legitimacy before advising them—on Oct. 16, one day after the agreement was signed—that they could proceed.
According to the complaint, the Danielses say they relied on representations and documentation provided by White River and Financial Gems — and allege that Financial Gems received compensation for steering investors into the scheme. The complaint accuses the defendants of engaging in “a sprawling scheme” that has now drawn scrutiny from federal agencies and lawmakers.
Senate Scrutiny Intensifies
In an April 14, 2025 letter to Acting IRS Commissioner Melanie Krause, U.S. Sens. Ron Wyden (D-Ore.) and Catherine Cortez Masto (D-Nev.) wrote that it appeared White River Energy Corporation and others “used the identity and image of Native American tribes without their knowledge to dupe investors into spending millions to purchase fake tax credits.”
The letter also revealed that White River claimed in an SEC filing that it had obtained the rights to $64 billion worth of tribal tax credits and had already made $24 million in total gross proceeds.
According to the senators’ correspondence, the Cherokee Nation’s attorney general sent a cease-and-desist letter to White River, stating “The Cherokee Nation did not authorize and is not associated with these tax credits and takes the misuse of its name seriously.”
In an earlier SEC filing dated November 2023, White River disclosed that it had acquired $500 million in what it described as “federal income tax credits issued to a Native American tribe,” and said it expected to receive at least $7 billion more. The company formed a new entity, White River Native CDFI LLC, as part of a joint venture to monetize the credits. Despite its name, White River CDFI does not appear on the U.S. Treasury Department’s recent list of certified community development financial institutions.
According to the 2023 SEC filing, proceeds from the sale of the credits would be used to pay off corporate debt, fund oil and gas drilling programs, and invest in commodities trading—not tribal development. The filing did not name the tribe involved or cite any federal authority under which the credits were issued.
In a May 13, 2025 letter to White River CFO Jay Puchir, Cortez Masto and Wyden disclosed that the Senate Finance Committee had obtained a recording of a White River investor call that “contains evidence of a corrupt lobbying scheme.” During the call, Puchir allegedly told more than 100 investors that he would use his “contacts” in the incoming Trump administration to gain favorable regulatory treatment for the so-called tribal tax credits, including a potential private letter ruling from the IRS and assistance from the SEC to re-list the company’s stock.
According to the senators, White River could not provide investors with any formal documentation or government contact to validate the legitimacy of the tax credits, despite repeated requests from investor representatives. One call participant reportedly claimed their clients had already purchased $30 million worth of the credits — all of which had been rejected by the IRS.
The senators demanded answers from White River, writing: “We believe the investor call contains evidence of a corrupt lobbying scheme between White River and incoming Trump Administration officials to authorize millions in so-called ‘tribal tax credits’ the IRS claims do not exist.”
Trump Nominee's Financial Ties
The letter also revealed that Billy Long, a former U.S. congressman and President Trump’s nominee to lead the IRS, was paid more than $65,000 for promoting the sale of White River’s so-called tribal tax credits. His financial disclosure showed over $5,000 in direct payments from the company and tens of thousands more routed through a lobbying firm allegedly involved in the scheme. Several White River personnel also made political donations to Long after his nomination, which were reportedly used to pay down his campaign debts, according to the senators’ investigation.
Despite the controversy, the Senate confirmed Long as IRS Commissioner in a 53–44 vote on June 12, 2025. He will serve the remainder of the term through November 2027.
In a June 2 press release, White River Energy Corp. “categorically denied” the allegations made by Senators Wyden and Cortez Masto, claiming the accusations were part of a coordinated effort—along with a Bloomberg reporter—to undermine the confirmation of Billy Long as IRS commissioner and damage the company’s reputation. The company said it had “never communicated with or corresponded with” Long and denied promising favorable treatment by the Trump administration. It also accused the senators of collusion and misrepresentation.
In the press release, White River asserted that more than 100 taxpayers had successfully claimed similar tribal tax credits with assistance from IRS offices and the Taxpayer Advocate Service, and said it was evaluating legal action against the senators and Bloomberg for defamation and interference with its business.
