White River Energy Tax Credits: Investors May Have Recovery Options

Investors who suffered losses on “tribal tax credits” promoted by White River Energy Corp. may have recovery options. Carlson Law is investigating potential claims in connection with these credits. The Internal Revenue Service stated in a recent release that such tax credits “do not exist.” Brokers and broker-dealer firms who recommend them to retail investors may have done so unsuitably.

White River Energy, an oil and gas company based in Fayetteville, Arkansas, started selling “federal income tax credits issued to a Native American tribe” in 2023, per SEC filings. It worked with registered investment advisers to sell these credits as “a fake tax shelter,” according to an August 2025 letter written by Senator Ron Wyden, ranking member of the Senate Finance Committee. White River allegedly represented to investors “that the credits were trading for sixty cents on the dollar: i.e., for every $60,000 in credits purchased the investors could reduce their taxable income by $100,000.” Despite these representations, Wyden alleged, these tax credits “are a tax scam used to prey on investors.”

The IRS echoed Mr. Wyden’s warning in a news release published on September 18, 2026. According to this news release, tribal tax credits “do not exist under federal law.” The IRS notes that taxpayers who claim these credits may be subject to civil and criminal penalties. The release goes on to describe various ways that promoters of these credits “misrepresent tax law,” including by claiming that a government agreement exists allowing the tax credits, or that the IRS has previously accepted them. The IRS advises investors to be vigilant for potential red flags of fraudulent schemes, including “Offers to purchase tax credits for substantially less than their value” and “Claims that only a limited number of credits are available or that taxpayers must act quickly.”

White River Energy Corp has been advised that it is the subject of a criminal tax investigation, according to Mr. Wyden’s letter, which notes that the total sales of the credits may be more than $100 million. White River Energy disputed the allegations in a June 2025 news release, accusing Mr. Wyden of coordinating with a Bloomberg reporter to target the company, and alleging that the tax credits do, in fact, exist.

Brokers and investment advisors who recommended these credits may be liable for damages to investors who suffered losses. FINRA Rule 2111 requires brokers to have a reasonable basis to believe a recommendation is suitable for a customer, based on reasonable diligence into the customer’s investment profile. Investment advisers, meanwhile, are beholden to a fiduciary standard to act in their investors’ interests. Potential sales practice violations include unsuitable recommendations, misrepresentation and omission of material facts, and the failure to conduct adequate due diligence.

Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered losses on White River Energy tax credits, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.