Hardeeville’s East Argent developers found guilty of tax fraud involving more than $1B
Jack Fisher, founder and former CEO of Preserve Communities, the real estate company responsible for Hardeeville’s East Argent development, was convicted Friday of fraudulently selling over $1.3 billion in tax deductions meant to help protect the environment, making millions from the scheme.
A federal jury sitting in Atlanta convicted Fisher and James Sinnott, former Preserve Communities president and chief operating officer, of conspiracy to commit wire fraud, aiding and assisting the filing of false tax returns, and subscribing to false tax returns Friday. Fisher also was convicted of money laundering.
Fisher and Sinnott have since been removed from Preserve Communities’ leadership team page.
The City of Hardeeville approved Preserve Communities’ East Argent Planned Direct Development in 2005 for over 12,500 residential units across 7,350 acres, according to its website. It is the largest development in Hardeeville’s history and sits between U.S. 278 and S.C. 170. Since its inception, the project received mixed reviews from officials and residents who worry about potential environmental and traffic impacts.
Fisher used the money to purchase a Mercedes Benz, a private jet, and an RV and trailer. He also used the money to buy homes in the United States and Caribbean.
How did the scheme work?
The scheme the jury convicted Fisher and Sinnott of dated back nearly two decades and involved “syndicated conservation easements.”
Under standard conservation easements, landowners get charitable deductions for giving up their land’s development rights, normally by donating them to a nonprofit land trust. Many local plantations in the ACE Basin Watershed have entered these conservation easements in the past. It’s a legal agreement that protects the land from being used for commercial or residential development. The Ashepoo, Combahee and Edisto Basin is one of the largest undeveloped estuaries located primarily in Colleton, Charleston and Beaufort counties.
According to Propublica, with syndicated versions, bad actors:
1) Buy vacant land, like abandoned golf courses, that aren’t worth much.
2) Hire an appraiser willing to wrongly declare the land is worth much more than it actually is. In Fisher and Sinnott’s case, they often appraised the land 10 times higher than what they originally paid to acquire the property.
3) Sell stakes in the donation. Fisher and Sinnott sold stakes in the donation to wealthy individuals, promising them deductions 4.5 times the amount they originally paid.
4) Donate the land to a nonprofit land trust and receive charitable deductions much more than they should actually be. Fisher, Sinnott and others received more than $41 million in payments that were backdated or late for false and inflated tax deductions.
What does it mean now?
Fisher and Sinnott face a maximum of between three and 20 years in prison for each count. The government is also seeking the forfeiture of money and properties purchased by Fisher and Sinnott in connection with their fraudulent scheme. A federal district court judge will determine their sentence.
Preserve Communities was unavailable for immediate comment about how this would impact Hardeeville’s East Argent development.
Jack Fisher’s voicemail was full, and Jennifer Fisher-Buntin, the vice president of marketing for Preserve Communities, didn’t immediately respond to a voicemail.
This story was originally published September 25, 2023 at 5:18 PM.
