William Grady Under Scrutiny for Conservation Easement Investment Dispute

Tax-advantaged investments like conservation easements can seem appealing on paper, promising substantial deductions and long-term gains. However, when the risks are understated or the valuations exaggerated, these complex products can become a source of major financial loss.

William M. Grady (CRD#: 4585561), a broker registered with Sequence Financial Specialists in Florence, South Carolina, is currently facing a pending FINRA arbitration involving a disputed conservation easement transaction. The case raises questions about suitability, disclosure and oversight in the sale of tax-sheltered investments.

In the article below, we’ll outline the pending claim against Grady, explain the broader risks associated with conservation easements and offer guidance for investors who suspect their portfolios were mismanaged. Sonn Law Group is currently investigating claims and offers free, confidential consultations.

Pending Arbitration Over Conservation Easement Investment

In May 2024, a customer filed a FINRA arbitration claim (Case #24-01082) against William Grady and his firm, Sequence Financial Specialists. The claim centers on the recommendation and sale of a conservation easement investment — a complex, tax-sheltered strategy that has come under increasing IRS scrutiny in recent years.

According to the filing, Grady and his firm allegedly misrepresented the benefits of the investment, overstated potential tax savings and failed to adequately disclose concerns related to valuation and risk. The claimants argue that these omissions amounted to a breach of fiduciary duty. While no specific damage amount was disclosed, the complaint notes that detailed loss calculations and model portfolio comparisons will be presented at the arbitration hearing.

Grady’s firm disputes the allegations, stating that the claimants were sophisticated investors who acknowledged the potential risks and voted to pursue the conservation easement option themselves. The firm also cites third-party due diligence reports and legal or tax opinions used during the transaction. However, both documents reportedly avoided offering any opinion on valuation, which is a key issue in IRS enforcement actions involving syndicated easements.

With conservation easement transactions now under heightened regulatory review, this case reflects growing concern over how these products have been marketed and sold to individual investors.

Grady’s Registration History and Industry Involvement

William Grady has been a registered broker with Sequence Financial Specialists, LLC, in Florence, South Carolina, since 2009. Prior to that, he was affiliated with Resource Horizons Group from 2007 to 2009. His career in financial services spans decades, with extensive registrations and supervisory credentials.

Grady is currently licensed in 51 U.S. states and territories and has passed several securities industry exams, including the Series 7 (General Securities Representative), Series 24 (General Securities Principal) and Series 79 (Investment Banking Representative). His registration also includes approval as an Investment Banking Principal and Operations Professional.

In addition to his work with Sequence Financial, Grady is involved in a wide range of other business activities. These include both investment-related and non-investment ventures, such as:

• Provide tax planning and accounting services through Grady Consulting LLC.
• Manage real estate investments and rental properties via Grady Rentals LLC.
• Operate Grady Brothers Property LLC as part of his real estate holdings.
• Oversee private investment activity through Denbign Capital Management.
• Maintain affiliations with multiple LLCs involved in advisory services.
• Serve as trustee for 11 separate trusts.
• Participate in investment partnerships, including the Palmetto Options Club.

Understanding the Risks of Conservation Easement Investments

Conservation easements are legal agreements that permanently restrict land development to preserve environmental or historic value. While originally designed to support genuine conservation efforts, they’ve become controversial in the form of syndicated conservation easements, which are investment deals where promoters sell stakes in land partnerships and market inflated tax deductions to investors.

These syndicated deals often promise large federal tax write-offs, sometimes 4-5 times the amount invested. That has drawn sharp IRS scrutiny. The agency now considers many of these transactions abusive tax shelters and has increased audits, disallowing deductions it views as inflated or unjustified.

Common risks include overvalued appraisals, complex ownership structures, aggressive sales tactics and limited ability to sell or exit the investment. If the IRS rejects the deduction, investors could face back taxes, penalties and legal fees often exceeding their original investment.

What Investors Should Watch For

Investments tied to conservation easements or similar alternative strategies often come with promises that sound too good to be true, and that’s a warning sign in itself. If you’ve been pitched a tax-advantaged opportunity, especially one involving land partnerships or easements, keep an eye out for these common red flags:

• Claims that the investment is “guaranteed,” “risk-free,” or “IRS-approved”
• Promised tax deductions that far exceed the amount you invested
• Vague or confusing information about how the land was valued
• Difficulty getting clear answers about how the investment works or what your role is
• Being asked to approve documents or vote on key decisions without adequate explanation

If any of these situations sound familiar, it may be time to have your investment portfolio reviewed by a securities attorney. These signs often point to deeper issues that could expose you to serious financial and legal consequences.

Concerned About a Conservation Easement Investment? We’re Here to Help

If you believe you were misled about a conservation easement or suffered losses after following William Grady’s investment advice, you may have legal options. Sonn Law Group has decades of experience helping investors recover funds lost to unsuitable or deceptive financial products, including complex tax-advantaged strategies like syndicated easements.

Led by nationally recognized securities attorney Jeffrey Sonn, our firm has recovered millions for clients nationwide. We offer free, confidential consultations and work on a contingency basis, meaning you don’t pay anything unless we secure compensation on your behalf.

Reach out today to find out if you have a claim and explore your next steps.