White River’s Energy Tax Credit Fraud Scam

White River Energy Corp’s (WTRV) and SEC registered investment adviser Nepsis, Inc. are the subject of an ongoing DOJ criminal tax investigation into the sale of so-called “sovereign tribal tax credits” that were fraudulently sold to investors. According to news reports, the claim was that they were falsely marketed as being allocated to tribes under the Indian Self-Determination and Education Assistance Act. In fact, they were not legitimate, and caused problems later for investors.

White River and Nepsis invoked the names of multiple Native American tribes, and claiming exclusive access to these credits. To the brokers and investors, the companies were giving the incorrect impression that they were not only sanctioned by the tribes but operated within the tribes’ inclusive legal framework. These tax credits didn’t exist, and the named tribes disavowed any relationship with both companies. The Cherokee Nation’s attorney general issued cease-and-desist letters demanding White River stop using the tribe’s name.

Commonly called “Sovereign Tribal Credits,” or “Native American Federal Income Tax Credits,” these non-existent credits were allegedly purchased and re-sold for a substantial discount to well-to-do investors interested in lowering their tax liabilities. The company claimed to have purchased the rights to over $64 billion of these alleged tax credits from the various Native American tribes.

Allegations include White River used unclear language in what little information they dispensed, giving the impression to both brokers and investors that they were legitimate. They also counted on investors not understanding how federal laws and tribal laws might work for such a scheme. Brokers who promoted these false “tax credits” had little information for due diligence. Coupled with a false sense of urgency and limited availability, investors were convinced to buy into the scheme with no other information than whatever their brokers gave them.

Unfortunately, the IRS did not agree. One couple who invested in these false credits added them to their tax return, assuming they would receive a tax reduction. The couple paid $1.62 million for the fake credits that were allegedly worth $2.7 million. The IRS quickly rejected their return and imposed a penalty of $149,009.86. Other investors had similar results, despite White River’s assurance that these credits were valid investments.

Criminal Prosecution

In a letter dated April 14, 2025, Senator Ron Wyden of Oregon and Senator Catherine Cortez Masto of Nevada, members of the Committee on Finance wrote to acting IRS Commissioner Melanie Kruse requesting a criminal investigation into White River’s activities. The letter cited the false tax credits the company was selling to unsuspecting investors as well as using the names of Native American tribes to convince investors that the credits were legitimate.

In an audio recording of an investor call obtained by Senators Wyden and Masto, one participant tells White River CRO Jay Puchir that they sold approximately $30 million in these credits, and that they were all rejected by the IRS. Puchir responds that they had no one in either the Biden or Trump Administration who approved the sale of these credits, but it would be coming with the new incoming Trump Administration.

In January of 2026, Senator Wyden wrote a follow-up request to SEC Chairman Paul Atkins requesting that the agency revoke White River’s securities registration. The company failed to file 10-K annual reports for FY2023 and FY2024. They have not filed a quarterly report in two years, and have not disclosed information to investors about the Department of Justice’s criminal investigation regarding White River’s fraudulent “tribal tax credits.”

Did You Invest In the White River Energy Tax Credit Scam? 

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