Buyer of Dubious Tribal Credits Sues, Citing $1.7 Million Loss

A Florida couple has filed what appears to be the first lawsuit by a buyer of so-called sovereign tribal tax credits, which the IRS and the Treasury Department have said don’t exist.

Justin and Robin Daniels of Jupiter, Fla., filed suit in Palm Beach County Circuit Court against White River Energy Corp., the credits’ sponsor; as well as a wealth advisory firm that helped to market the credits and their own accounting firm.

White River has denied any wrongdoing, and said that the IRS has processed returns with claims for the tribal credits, and even issued refunds. A company spokesperson didn’t immediately respond to a request for comment.

The Daniels say they paid $1.62 million to buy credits they were assured were legitimate, until the IRS rejected their 2023 tax return and assessed $149,000 in penalties.

“Plaintiffs were just two of many victims of a sprawling scheme to sell fraudulent tax credits on unsuspecting investors,” according to the lawsuit.

The complaint references an April letter by Sens. Ron Wyden (D-Ore.) and Catherine Cortez Masto (D-Nev.) calling on the IRS to launch a criminal investigation of White River and third-party promoters who helped sell the credits to wealthy investors. Bloomberg Tax first reported on the existence of the tribal tax credits in December 2024.

The credits became an issue in the nomination of former Rep. Billy Long (R-Mo.) to be IRS commissioner after he disclosed he was paid by White River to help refer buyers and received contributions from people associated with White River to help pay off old campaign debts. Long’s nomination is awaiting a vote in the full Senate.

According to the complaint, the couple met with White River officials and a representative of one of the program’s promoters, Financial Gems LLC. They told the Daniels that the credits were related to tribal oil and gas projects, and “failed to disclose the illegitimate and illusory nature of the tax credits they purported to sell,” according to the complaint.

The lawsuit also accuses the Daniels’ accounting firm, Armanino LLC, of “professional negligence” for advising the couple that the credits were legitimate. Officials at Financial Gems and Armanino didn’t immediately respond to requests for comment.

The case is Justin M. Daniels v. Armanino Advisory LLC, Fla. Cir. Ct., No 50-2025-CA-005340, 5/29/25.