Nonprofit Pays Millions for Allegedly Submitting Inflated New Market Tax Credit Applications

  • Oregon AG Ellen Rosenblum reached a settlement with nonprofit Ecotrust and its for-profit affiliate Ecotrust Forest Management, Inc. (collectively, “Ecotrust”) to resolve allegations that Ecotrust submitted false applications to gain New Market Tax Credit (“NMTC”) financing for its development projects in violation of the Oregon False Claims Act.
  • According to the AG’s office, Ecotrust allegedly inflated projected expenditures on two development projects for which it was applying for NMTC financing, causing the state to be overcharged by approximately $1.85 million in tax credits, and used the tax credits to purchase property and enrich investors instead of the intended purpose of providing job opportunities in economically disadvantaged areas of the state.
  • According to the AG’s office, under the terms of the settlement, Ecotrust will pay $4.4 million to the state.