Hollman, Inc. creates locker rooms for NFL teams like the New Orleans Saints and companies like Google and Facebook. This year, it expects to bring in $72 million in revenue. Yahoo Finance's YFi AM speaks to the CEO of Hollman, Inc. Travis Hollman
Hollman, Inc. creates locker rooms for NFL teams like the New Orleans Saints and companies like Google and Facebook. This year, it expects to bring in $72 million in revenue. Yahoo Finance's YFi AM speaks to the CEO of Hollman, Inc. Travis Hollman
(Bloomberg) -- Science 37 Inc., a digital operating system that facilitates clinical trials, has agreed to go public through a reverse merger with a blank-check company, according to people with knowledge of the matter.The Los Angeles-based firm will merge with a special purpose acquisition company, LifeSci Acquisition II Corp., said the people, who asked not to be identified because the information is private. Science 37 has an enterprise value of $1.05 billion in the transaction, the people said.The transaction will include a $200 million private placement from investors, the people said. The deal could be announced as soon as Friday, they said.Representatives for Science 37 and LifeSci Acquisition II declined to comment.Science 37, whose name references the normal human body temperature in Celsius, allows patients to participate in trials of new drugs and medical equipment from their own homes.Researchers use its platform to conduct telehealth check-ins, as well as for administrative tasks such as securing patient consent agreements, according to its website. The company lists Amgen Inc. and Genentech Inc. among its investors and partners.LifeSci Acquisition II, backed by boutique investment bank LifeSci Capital, raised $80.1 million in November in an initial public offering. It said in its listing documents that it was seeking targets in the biopharma, medical technology, digital health and health-care services sectors.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- China’s exports rose more than expected in April and imports climbed, a reflection of strong domestic and international demand despite the pandemic and surging commodity prices.Exports grew 32.3% in dollar terms in April from a year earlier, while imports soared 43.1%, the customs administration said Friday. That left a trade surplus of $42.85 billion for the month. Economists had forecast exports would increase 24.1% while imports would gain 44%.Global appetite for Chinese goods remained strong in the month, thanks to stimulus packages introduced by developed economies and China’s status as the world’s biggest exporter.“The export figure clearly reflects a recovering and expanding global economy,” said Hao Zhou, an economist at Commerzbank AG in Singapore. “Robust imports and exports also mean that China’s manufacturing industry is still outperforming the services sector to lead the economic rebound.”The U.S. was the biggest export market last month, accounting for 15.9% of Chinese goods sold abroad. Southeast Asian nations bought 15.6% of exports while the European Union purchased 15.1%.Soaring commodity prices and the China’s strong recovery helped to boost imports, which grew at the fastest pace since January 2011. The low base from a year ago also helped to underpin the strong growth figures.At the Communist Party’s Politburo meeting last week, China’s top leaders pledged to accelerate the recovery in domestic demand and reiterated there would be “no sharp turn” on economic policy. That should help support the rebound and import demand in coming months.Other details:For a breakdown of commodity imports, click here. While the volume of iron ore imports rose 6.7% in January-April compared with the same period in 2020, the value of shipments surged 82.1%Imports were also boosted by the delivery of 24 aircraft in April; on a year-to-date basis, the value of aircraft imports surged 247% from the same period in 2020In yuan terms, exports rose 22.2% in April from a year earlier, higher than the 12.5% forecast by economists in a Bloomberg survey; imports grew 32.2%, below the 33.6% predicted(Updates with additional details and comment from economist.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
LONDON (Reuters) -The Bank of England slowed the pace of its trillion dollar stimulus program and forecast a faster recovery for Britain from the coronavirus slump on Thursday, but stressed it was not tightening monetary policy. Governor Andrew Bailey said it was good news that the economy looked set for a stronger recovery than previously forecast, with less unemployment.
(Bloomberg) -- Fears of rising interest rates and warnings over bond valuations have made junk- and investment-grade rated bonds a popular short bet among hedge funds.Speculators are predicting fresh pain for the bond market, especially for longer-dated bonds with sovereign yields being tipped to rise due to an increase in inflation forecasts. This comes amid warnings from market experts regarding the “over-extended” valuations of CCC-rated bonds, the riskiest class of debt.Global high-yield bonds worth as much as $55 billion are on loan to traders seeking to profit if prices drop, according to data from IHS Markit Ltd., by a narrow margin the largest balance since the fall of 2008. This compares with about $35 billion at the start of the year.In the euro-denominated investment-grade market, roughly $30 billion equivalent of bonds have been borrowed, the largest loan balance since early 2014.“I would expect that list to get bigger as spreads tighten and/or people get worried about rates rising,” said Tim Winstone, a portfolio manager at Janus Henderson, which oversees 294 billion pounds ($409 billion). “At these levels of valuations, I’m not surprised more people, such as hedge funds, are setting shorts.”Bond investors including Pacific Investment Management Co. have been cutting down on broad-brush bullish bets lately, citing expensive valuations after a rally that has run for over a year.The trend is having an impact on the performance of deals in the secondary market. Almost one out of four high-yield bonds sold this year is indicated below the price it was issued at, based on data compiled by Bloomberg.The trend has been attributed to so-called fast money from hedge funds that seek to sell the debt quickly at a profit, or with an interest to short.A 275-million-euro deal by Standard Profil Automotive GmbH fell four cents on the euro just days after pricing in the primary market last week. The deal is one of the worst performers among 2021 issues, trailing only two notes from retailer Iceland and packaging group Kloeckner Pentaplast.Investors are building up defenses against a potential scaling back of central-bank support. While the Federal Reserve maintains it isn’t ready to discuss a tapering of asset purchases yet, investors bet the U.S. central bank will come under pressure to do so later this year. Meanwhile, the European Central Bank could decide to prune its emergency bond-buying program as early as next month if the euro-area economy doesn’t deteriorate.On Thursday however, the Bank of England said it doesn’t intend to tighten until there’s clear evidence of rebound. Yields on 10-year U.K. government bonds have fallen for four of the past five weeks and risk premiums in sterling company debt traded near post-financial-crisis lows.Yet, investors are also seeking to taper-proof their portfolios with the turbulence of 2013 still fresh in their minds. The Fed warned Thursday that rising appetite for risk is stretching valuations and creating vulnerabilities in the U.S. financial system.Read More: Fed Warns of Peril for Asset Prices as Investors Gorge on RiskSome say the shorting strategy is premature.Kshitij Sinha, a portfolio manager at Canada Life Investments, which oversees 41 billion pounds ($57 billion), doesn’t see scope for significant repricing yet.“Shorting cash corporate bonds just for spread widening is very expensive,” he said. “You are better off expressing that view through CDS, either in single names or indices.”EuropeEuropean credit risk is in focus after macroeconomic data from the world’s largest economies showed a recovery is well under way.Credit Agricole joined regional peers in posting a strong trading performance, as 1Q profits jumped and it booked lower-than-anticipated charges to cover potential loan lossesSome German companies also reported promising earnings numbers, with Adidas raising its 2021 sales forecast and Siemens increasing expectations for its 2021 net; BMW reaffirmed its outlook for the year and said its automotive Ebit margin will come at the upper end of its forecastThe primary credit market is expected to slow down today as the week draws to a close; Erste plans to offer an inaugural sustainability bond, while FMO could bring a USD 5Y securityMeanwhile, the European Central Bank could decide to scale back its emergency bond-buying program as early as next month if the euro-area economy doesn’t deteriorate, according to Governing Council member Martins Kazaks.AsiaIssuers from the aviation industry were in focus in Asia’s primary dollar bond market on Thursday with BOC Aviation offering 3-year notes and Cathay Pacific mandating banks for dollar debt sale which would be its first since the 1990s.The bond from BOC Aviation came after the aircraft financing company raised more than $1 billion so far this year, data compiled by Bloomberg showsAsian investment-grade dollar bond spreads widened as much as 1 basis point, traders said, as investors assessed factors including the latest pandemic setbacks. But they remain down on the year and near the lowest since early 2020Naver Corp. received over $650 million of orders for its $300 million notesU.S.EQT agreed to acquire all of the membership stake in Alta Resources Development’s upstream and midstream subsidiaries for about $2.925 billion, to be funded with cash on hand, drawings under our revolving credit facility and/or through one or more debt capital markets transactionsThe Reddit army’s meme-packed campaign to boost GameStop stock price has now resulted in one of the most conventional victories on Wall Street: a credit-rating upgradeInternational Business Machines Corp. was downgraded by S&P Global Ratings one notch to A-. The ratings firm said an acquisition spree adds doubt to the tech company’s time line for reducing debt(Updates with reference to Pimco’s positioning in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The U.K.’s financial regulator handed down its first penalty over the Cum-Ex tax scandal, fining a broker 178,000 pounds ($248,000) for failings regarding its relationship with hedge-fund manager Sanjay Shah.Sapien Capital, which executed more than 6 billion pounds of trades in Danish and Belgian stocks on behalf of Shah’s Solo Capital group through 2015, had inadequate financial-crime controls in place, the Financial Conduct Authority said in a statement Thursday.Shah has emerged as a key figure in a scandal over alleged tax fraud that has engulfed multiple European countries, with investigators raking over a trading strategy that allowed investors to claim multiple refunds on a dividend tax that was paid only once. The FCA said the trading “is highly suggestive of sophisticated financial crime.”“These transactions ran money-laundering and other financial-crime risks, which Sapien incompetently failed to see,” Mark Steward, the agency’s director of enforcement and market oversight, said. The fine was reduced due to serious financial hardship.Ramesh Kumar Ahuja, Sapien Capital’s chief executive officer, declined to comment by phone. The firm told the FCA that “it is only with the benefit of hindsight that the shortcomings in relation to the Solo business have become apparent,” according to a summary of its submissions.While more than 25 bankers, traders and lawyers have been charged in Denmark and Germany, U.K. authorities have faced criticisms from the courts for the speed of their investigations.Danish prosecutors said earlier this year that Shah was the mastermind behind a a 9.6 billion-krone ($1.6 billion) tax-fraud case. Shortly after that, Shah and six others were indicted by Hamburg prosecutors over more than 50 cases of money laundering relating to Cum-Ex trades in Denmark and Belgium that went through German accounts.Shah has consistently said he did nothing wrong other than take advantage of loopholes in national laws.The FCA said Sapien had just 40 clients before adding more than 160 customers linked to Solo. The brokerage was expecting to take in as much as 700,000 pounds in brokerage fees annually.Even when Sapien couldn’t be sure about the identity of one of the Solo clients, a mix of offshore companies and pension plans, it proceeded to add the firm as a customer anyway, the FCA said. The client presented mismatched signatures as part of a bundle of documents and Sapien simply asked it to re-sign the forms, the regulator said.Inside Sapien, the mismatched signatures were known as a “touchy subject,” according to the FCA.(Updates with details on Sapien Capital’s submissions in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- BMW AG expects the global semiconductors shortage hobbling automotive production to be resolved in a couple of years as companies and governments work to overcome the shortfall.“There’s intense focus on the issue globally, so it’s to be expected for supply and demand to be back in balance within two years at the latest,” Chief Executive Officer Oliver Zipse said in an interview Thursday at the company’s driving academy near Munich.A lack of chips used in everything from navigation systems to certain rear-view mirrors has forced carmakers to curtail production just as demand picks up again in major economies that are easing pandemic restrictions. While Ford Motor Co. last month estimated the scarcity of semiconductors will slash earnings by $2.5 billion this year, BMW has only reported limited stoppages at two European plants.Zipse’s optimistic view contrasts with some of his carmaking peers. Renault SA CEO Luca De Meo said Thursday the chip crisis has exposed the “frightening” fragility of complex supply lines where entire industries depend on highly specialized manufacturers. Strategies that might have been valid two decades ago should be revisited, he said.Volkswagen AG has also cautioned that the semiconductor shortage will become more pronounced in the second quarter, though it still raised its full-year earnings outlook this week. BMW sent a similarly upbeat message on Friday, saying it expects automotive returns to reach the upper end of its 6% to 8% forecast. Strong demand spreading from China to the U.S. and Europe is helping offset higher prices for raw materials such as copper.“We cannot expect to remain completely unscathed by the chip shortage during the second quarter,” Zipse said. “But the extent won’t mean a significant impact on our earnings.”BMW rose as much as 2.1% in Frankfurt, extending gains this year to 18%. The carmaker said additional costs of as much as 1 billion euros ($1.2 billion) from rising commodity prices will be partially tempered by foreign-exchange gains, reducing the net impact to about 500 million euros. Higher rhodium, palladium and steel prices are particularly concerning, BMW said.Investment BoomThe chip shortages that arose after consumers snapped up electronic gadgets en masse while confined to their homes have spurred broad efforts to boost production. The European Commission plans to double the bloc’s output to at least 20% of world supply by 2030, a move that would reduce its reliance on foreign companies.U.S. President Joe Biden has vowed to better secure America’s supply chain by reviving domestic chip manufacturing. Taiwan Semiconductor Manufacturing Co. will spend as much as $28 billion on new plants and equipment this year.While waiting for investment programs to gather pace, manufacturers have had little choice but to idle plants or take the unusual step of stripping certain high-tech features from select models.Zipse said BMW has no plans to seek new partnerships or joint ventures, despite current restraints.“For critical components, we’ll stick with long-term supply contracts and a range of different partners,” he said. This will include battery cells critical to accelerating BMW’s rollout of EVs, he said. “From our point of view, we’ve covered the necessary supplies with long-term contracts.”(Updates with CEO comment in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Elon Musk, CEO of Tesla and SpaceX, likes cryptocurrency, such as bitcoin and dogecoin. But he's urging investors to proceed "with caution."
HELP ME RETIRE Dear MarketWatch, My wife and I recently sold our home. After paying capital gain taxes, we look to net about $1 million. We are both in our late 60s. My wife is retired, and I work part time in my profession, currently grossing approximately $50,000 a year.
You could be entitled to additional money, based on your 2020 income tax return.
In an interview with Fortune, Alba talked about taking her “fourth baby” (a.k.a. her company) public.
The crypto run this time has two features the 2017 version didn’t—institutional adoption and actual applications.
(Bloomberg) -- Coinbase Global Inc. sank to a record low as investors fled high-flying market newcomers.The operator of the largest U.S. cryptocurrency exchange slumped 6% to $256.76 on Thursday, dropping for a fourth straight day. That left the shares just above the $250 reference price for its April direct listing. An exchange-traded fund that tracks shares of companies that recently went public plunged for an eighth day, the longest slide since 2015. Virgin Galactic Holdings Inc. and Opendoor Technologies Inc., companies that came to market through blank-check offerings, each sank at least 3.8%.“We saw a mini-bubble in SPACs, IPOs, crypto, clean-tech and hyper-growth in late 2020 and early 2021 and many of these asset classes are nursing bad hangovers,” said Mike Bailey, director of research at FBB Capital Partners.Coinbase’s slide comes as investors pour into extremely speculative cryptocurrencies such as Dogecoin and Binance Coin -- tokens that the exchange doesn’t offer. Most of its traffic had come from Bitcoin trades, but the price of the largest crypto coin has been mired in a narrow band for weeks. Coinbase started trading at $381 on April 14 before briefly topping $400. It’s now down 22% from the close on its first day.Nasdaq had set a reference price of $250 a share on April 13 for Coinbase’s direct listing, a number that’s a requirement for the stock to begin trading, but not a direct indicator of the company’s potential market capitalization.“What has really hurt Coinbase, now that their direct listing has taken off, you’re seeing expectations that other exchanges are coming on board,” said Edward Moya, senior market analyst at Oanda. “There’s this belief this could be as good as it gets for Coinbase in the short-term.”The Renaissance IPO ETF dropped 4.2% on Thursday, bringing its year-to-date loss to about 14%.(Updates prices.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- New York fund manager Andrew Beer got an unsolicited email offer a few months ago that sounded too good to be true -- join other investors to buy 276 acres of land in Mississippi, promise never to develop it, and get whopping tax deductions of as much as five times the amount invested.The pitch was for what’s known as a syndicated conservation easement, a land deal that the Internal Revenue Service says is often an abusive tax shelter. The offer came from a family office with a website touting partnerships with Middle East wealth funds. As an added enticement, the salesman offered Beer options to insure against the risk of IRS audits and investor-liability lawsuits.While no one has alleged anything improper with the Mississippi deal, Beer rejected it as “economically absurd.” Still, plenty of others have said “yes” to similar ones marketed across the U.S. by large networks of brokers, financial advisers, accountants and lawyers.For some wealthy investors, expanded government crackdowns on those land deals are creating financial and legal headaches. IRS Commissioner Charles Rettig told a Senate panel last month that 28,000 taxpayers are under examination, and the agency has challenged $21 billion in tax deductions claimed for syndicated conservation easement investments from 2016 through 2018. Some investors may owe millions of dollars in back taxes, as well as substantial penalties.One investor who requested anonymity said he put money in at least 10 deals with a promoter who sold them as a way to generate tax deductions rather than as development projects. Now, the IRS is examining those deals, said the investor, and he has answered detailed questions from criminal investigators about the promoters. The investor’s accountant has warned he may now face $8 million in back taxes and penalties if the deals are disallowed by the IRS.Read More: Tax Fraud on Green Land Spurs Crackdown: ‘The IRS Hates These’The industry selling syndicated conservation easements is “facing a ticking time bomb and potentially billions of dollars in exposure through arbitrations and lawsuits,” said Kalju Nekvasil, an attorney in St. Petersburg, Florida, who is handling about 30 claims by investors against promoters and brokers.Syndicated conservation easements aren’t typically sold by big banks like Goldman Sachs Group Inc. or UBS Group AG. Instead, they’re mostly promoted by brokers who run their own practices and are registered with little-known securities firms. They work with people outside the securities industry -- such as accountants, lawyers and tax preparers -- to woo doctors, entrepreneurs and other rich individuals to buy into partnerships that seek to exploit tax benefits from land conservation.The Mississippi deal offered to Beer was the brainchild of “a brilliant CPA and tax expert” named Wesley Hudson and his Atlanta-based Otemanu Group, according to the email pitch from the family office RD Heritage Group. Hudson didn’t respond to requests for comment and RD Heritage declined to comment.One securities firm that was paid for work on an Otemanu offering was Whitehall-Parker Securities, which was censured earlier this year in a disciplinary action unrelated to syndicated conservation easements, records show.``If you’re not getting audited, you’re not trying hard enough.’’Whitehall-Parker President Robert Yuloo defended the easement deals his brokers sold. In an interview, he said they’re marketed only to accredited investors “looking for alternative ways to cut taxes” and who all sign documents saying they understand the investments are highly speculative. “The leverage the IRS affords taxpayers is written in black and white,” Yuloo said. “Some CPAs are more aggressive than others. My CPA said, ‘If you’re not getting audited, you’re not trying hard enough.’”Tax breaks aren’t unusual for conservation easements donated to land trusts or governments. Congress created the incentive in 1980 for owners who pledge to never develop their properties, which has led to preservation of more than 30 million acres. President Joe Biden has made environmental preservation a priority, even as he seeks to boost IRS enforcement. Promoters of the syndicated deals say their valuations are legitimate and that the IRS is unfairly targeting them.The IRS is escalating prosecutions, civil suits and audits of deals sold as partnerships to multiple investors. The agency said some promoters are cheating by inflating what the land would be worth if developed -- and thereby any tax benefits. Just last month, the IRS cited syndicated conservation easements as a prime target of a new office that will clamp down on promoters of abusive tax schemes.The crackdown involves “many hundreds of employees from lawyers down through agents,” Rettig told the Senate panel last month.In 2018, the most recent year for which data is available, 16,900 people invested in syndicated conservation easements, claiming $9.2 billion in tax deductions, the IRS estimates. A preliminary review of 2019 transactions suggests they “continued at a similar rate,” said Nikole Flax, who was promoted by Rettig last month to commissioner of the agency’s Large Business & International Division. The increased enforcement means “auditing every single new transaction, including all of 2019, until we see that the abuse has stopped,” Flax said.`Significant Risk’The Financial Industry Regulatory Authority, or Finra, warned in 2018 that some broker-dealers it oversees were conducting inadequate due diligence of syndicated conservation easement offerings. The lapses included failures to investigate red flags -- such as the “significant risk” that the IRS would disallow tax deductions and question land appraisals underpinning them, Finra said. The regulator declined to comment for this story.The U.S. Securities and Exchange Commission didn’t return a request for comment.In a 2017 email pitch attached to a U.S. lawsuit, promoter Seth Peabody, then with DDS Tax and Accounting, told a dentist in Las Vegas, New Mexico, that a $50,000 commitment would yield a $200,000 deduction and “reduce your tax by another $100,000+/-.”Peabody told the dentist that David Mirolli, a broker whose registrations include Kalos Capital, would contact him. Since early 2020, Kalos has agreed to pay $345,000 to settle two disputes involving Mirolli’s customers, Finra records show. It wasn’t clear if those disputes were related to Peabody or to syndicated conservation easements.Peabody, Mirolli and Kalos didn’t respond to requests for comment. The dentist also didn’t respond to a request for comment, and it wasn’t clear from the lawsuit documents how much he invested in such deals.Promoter FeesThe attraction of syndicated conservation easements is simple for promoters: money. According to a Senate Committee on Finance report last year, promoters set aside as much as 12% of cash from investors to compensate those who help sell the deals, and they often retain far more for themselves. In some cases, that means less than half of what investors pay may go into acquiring land and other direct costs. The report also said the investments are mostly marketed as tax-cutting vehicles.One example is a proposed development in North Myrtle Beach, South Carolina, known as Ocean Grove Resort. Promoter EcoVest Capital Inc. raised $18 million from 193 investors for a deal involving property purchased for $5 million. Investors overwhelmingly voted to donate an easement rather than develop the land into 1,660 multi-family units. An appraisal set the value of the easement, allowing investors to claim $80.6 million of deductions from their taxable income, which reduced their tax bills by $30.2 million and generated a deal fee for EcoVest of $2 million, according to the Senate report.In 2018, the Justice Department sued EcoVest, four promoters and an appraiser, later claiming they created $3 billion in tax deductions through 138 syndicated easements. Those deals amounted to a “thinly veiled sale of grossly overvalued federal tax deductions under the guise of investing in a partnership,” according to the government. The U.S. seeks to bar EcoVest and the others from organizing and promoting partnerships that syndicate investors in conservation easements. One promoter has settled.EcoVest declined to comment for this story. But in a Dec. 21 court filing, the company said it “has helped to preserve in perpetuity nearly 20,000 acres of undeveloped property, including forests, meadows, wetlands, streams, and coastal plains.” EcoVest said it complies with all of its legal obligations and “undertakes rigorous processes to ensure its projects, and the independent qualified appraisals of the value of conservation easements, are valid and lawful.”In 2015, EcoVest turned to a newly established Triloma Securities to act as the managing broker-dealer. Triloma recruited 37 other broker-dealers to create a national network that included more than 200 “front-line sellers” of EcoVest conservation easement syndicates, according to the Justice Department. In three years through 2017, the Triloma-authorized sellers raised $413.7 million for EcoVest conservation easement syndicates, the government said.Marketing InvestmentsEcoVest created private placement memos outlining its deals, and its employees worked closely with sellers, attended meetings to discuss syndicates, trained them on how to market deals, and joined them on customer calls, the government said.In its filing, EcoVest said: “Finra rules and regulations require broker-dealers to perform substantial due diligence before offering investments for sale, and EcoVest provides broker-dealers with required due diligence materials and a limited set of training materials.”According to the U.S. complaint, sellers for one Colorado firm told investors: “When done correctly, it won’t be denied by the IRS. Typical worst case is that the valuation gets lowered and you would see less in tax savings.” The Justice Department has subpoenaed documents from Triloma, Kalos and several other firms involved in the sale of easements.Triloma, which hasn’t been accused of wrongdoing, didn’t respond to requests for comment. The firm is no longer registered with Finra, though records don’t indicate why.In another case involving a $9.7 million offering, an investor accused a broker-dealer of pushing a “high-risk, high-commission and unsuitable investment” in a syndicated conservation easement while withholding key facts and failing to conduct proper due diligence, according to a confidential arbitration complaint reviewed by Bloomberg.Criminal CasesGrand juries in Atlanta, St. Louis and Charlotte, North Carolina, are investigating promoters. Two accountants who pleaded guilty to fraud charges are helping prosecutors investigate a promoter who structured syndicates that generated $1.2 billion in tax deductions, people familiar with the matter told Bloomberg in March.There’s also risk for investors, some of whom have sued promoters and others involved in structuring the deals.According to an investor lawsuit filed March 30 in Atlanta, the IRS disallowed 100% of the deductions a partnership had claimed for a syndicated deal tied to 147 acres in Shelby County, Alabama, in 2016. In that case, the property was acquired for $709,000 and appraised a few days later at $25 million if fully developed. Investors paid $5 million to join the partnership and were promised five times as much in tax deductions, according to the lawsuit, which seeks class-action status. The partnership is fighting the IRS ruling in Tax Court.The Mississippi deal documents sent to Beer indicated that by preserving the plot, investors who collectively put up $4.3 million stand to save almost twice as much in taxes within 15 to 18 months. A securities filing for another deal by the same promoter, Otemanu Village Sand Investors LLC, shows that of the $8 million the venture raised, $2.3 million went to Village Sand Investors and Hudson, its executive officer.“This is designed to be sold to people who don’t ask questions,” Beer said. “These businesses revolve around people hearing what they want to hear.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Bill Gates transferred stakes in several companies to Melinda Gates on the day the power couple announced their divorce
Vietnam’s government is pouring cash into the country, which should enable the nation to achieve its 6.5% to 7% annual growth targets.
Vlad Tenev, CEO of Robinhood Markets, speaking at a “fireside chat” on Thursday, attempts to dispel any lingering speculation that the brokerage may be a so-called dogecoin whale, maintaining a massive stockpile of the crypto for its own benefit.
‘I have a $3,000-a-month pension. I am living with my ill father, and I am currently not working and looking for a job. I am going to college using the GI Bill. I am almost 50, and have no 401(k).’
The (ARKK) ETF (ticker: ARKK) delivered a 153% return in 2020. The ETF, which is actively managed by ARK Invest CEO and her team, is down 27% over the last three months, including an 13% decline in the past week alone.
It pays to be in the stuffed crust pizza game if you are Papa John's.
Since I have a monthly car allowance of $450 I want to step up my game and maybe even get a luxury car. The car I want to lease would be an almost $600-a-month car payment. During this exciting time, I can understand your desire to step into the car of your dreams.