KlaymanToskes files up to $1M FINRA claim over Webb Creek losses

KlaymanToskes says it filed a FINRA arbitration claim against Cambridge Investment Research as successor to Dempsey Lord Smith over six Webb Creek syndicated conservation easement investments sold to a South Carolina investor. The claim alleges investment losses plus as much as $700,000 in tax-related exposure after IRS challenges.

Why it matters: - The claim underscores the financial and tax risk investors can face when complex syndicated conservation easements are challenged by the IRS. - The filing seeks up to $1 million, a figure that includes alleged investment losses, tax liabilities, penalties, interest and related expenses. - Investors in Webb Creek, EcoVest and similar offerings may have potential recovery claims if they were sold through Gibson, Dempsey Lord Smith, Cambridge or another brokerage firm.

What happened: - KlaymanToskes announced a FINRA arbitration claim against Cambridge Investment Research, Inc., as successor-in-interest to Dempsey Lord Smith, LLC. - The case number is FINRA No. 26-02308. - The claim seeks up to $1 million for an investor who allegedly suffered losses from six Webb Creek syndicated conservation easement investments. - Financial advisor Gregory G. Gibson, CRD# 1694647, recommended the investments. - The filing was announced Oct. 23, 2026.

The details: - The investor allegedly bought six Webb Creek conservation easements between 2016 and 2021. - The investments totaled more than $200,000. - The six investments were Vibrant Minerals, Tarpon Creek, Paint Rock Farms, Standing Rock, Pitts Chapel and Cole Creek. - The claim says the investments were sold as legitimate tax strategies expected to generate charitable deductions worth several times the amount invested. - The investor had no prior experience with syndicated conservation easements and relied on Gibson and the brokerage firm to evaluate the investments and explain the risks. - The investor was allegedly told the IRS could not challenge the deductions after three years. - The investor was later reassured that Webb Creek was successfully addressing IRS examinations. - All six investments are now under IRS challenge. - The investor faces an estimated $600,000 to $700,000 in back taxes, penalties and interest, plus investment losses and tax-counsel expenses. - The claim alleges Dempsey Lord Smith did not conduct adequate due diligence on valuation, appraisal, tax, audit, penalty, liquidity and regulatory risks. - The claim also alleges the firm failed to reasonably supervise Gibson’s repeated recommendations and did not adequately disclose the possible financial consequences if the IRS disallowed the deductions. - As of Oct. 20, 2026, Gibson’s FINRA BrokerCheck report showed four settled customer disputes involving direct participation programs and limited partnership interests, with settlements totaling $409,663, plus two regulatory events. - Gibson was registered with Dempsey Lord Smith from 2012 through 2025 and is now registered with Cambridge in Simpsonville, South Carolina.

Between the lines: - The dispute centers on whether the brokerage and advisor properly evaluated a tax-driven product that could create liabilities far beyond the original investment. - The filing also points to a broader pattern of investor complaints tied to direct participation programs and limited partnership products. - KlaymanToskes is positioning the case as part of a wider effort to recover losses tied to syndicated conservation easements.

What's next: - Investors who bought conservation easements through Gibson, Dempsey Lord Smith, Cambridge or another brokerage firm are being asked to contact KlaymanToskes for a free, confidential consultation. - The firm lists 888-997-9956 and investigations@klaymantoskes.com as contact points for recovery discussions. - Investors with Webb Creek or other syndicated conservation easement losses may pursue similar claims if their facts are comparable.

The bottom line: - The filing turns a contested tax strategy into a wider recovery fight, with the alleged damages now stretching well beyond the original investment amount.