Oklahoma robber barons - stealing hope!




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  Home General Popular Topics Articles Commentary Scams & Frauds Players  
See press releases for latest updates.
New scam exposed release!
Altus group named in Colorado land scam!
Includes case documentation!

New list of tax credit users just released!
Help need identifying. See list!



Oklahoma's Capital Formation Incentice Act. CAPCO on steroids.

"The program amounts to corporate welfare at its worst" and that it is "destined to do little more than soak taxpayers." - Mark Hillman, Colorado state treasurer.

This site exposes Oklahoma's fraud ridden tax credit incentive program created by lawmakers so state officials and their cronies can take tax credits for future years and immediately sell for cash. With this scheme the program operates without oversight and accountability; the money never appears on state accounting records and does not appear on the state budget. The only evidence is when the state experiences unexplainable tax revenue shortfall, state officials can blame on the economy or a variety of other reasons.

First for those who prefer this be explained in simply everyday terms. -

The nuts and bolts
of Oklahoma's
tax credit investment incentive program.

The state of Oklahoma will give *CAPCOS $2 for every $1 they find investors willing to invest in new business ventures. That will allow the CAPCOs to pay the entire investment cost, for their investors, and guarantee those investors a 100% profit on their paid investment. The state pays all of this upfront so the investors are not out one dime. In others words a CAPCO says -- if you will tell me you want to invest $100,000 in this new business opportunity, the state will give us $200,000. $100,000 to pay your investment cost and another $100,000 for your willingness to help the state create more jobs for the people whose taxes are paying you this $200,000. No strings attached. The $100,000 is your money to keep whether the business opportunity is a success or failure. If the business is a success then you also have a $100,000 share in the business.

Let's illustrate using a $32 million investment example, like the Altus Ventures/Quartz Mountain Aerospace project.

In this case the state gave Altus Venture's $66.3 million to cover their investors $32 million investment costs, plus another $32 million to reward those investors the promised profits. Then tossed in another $2.3 million for incidental out of pocket expenses..

The CAPCO decides it doesn't want to invest the entire $32 million. Only invest $16 million now, and keep the money for something else. That is ok because state only requires the CAPCOs invest at least one-half or $16 million of the $66 million receive for AV/QMA.

Why would state officials offer such a great deal? Our state officials say it has to be this generous to interest the investors they want to attract.

To ease the concerns expressed by some CAPCOs they would prefer the public not know what was going on with this program, state officials agreed to withhold all information about this program. The public is prevented from learning how much the program is costing, what the money is used for, who is involved and/or who is benefiting.

There is one other little piece of info the public should know. There is nothing in Oklahoma law that says state officials cannot be investors.

State officials could very well be those investors using public funds to pay their cost to invest in new business ventures and reward them with an immediate guaranteed 100% profit on that public money.

*Note: also referred to as fund managers, pass-through entities, and various other terms.


First for those who prefer more details. -

This program has been cloaked in secrecy preventing the public and state lawmakers from knowing (for different) how much the program was costing or who was receiving the money. The first definitive appeared with barely a whisper this spring (2008) when state finance officials revised 2008 corporate income tax projections down from $450 million to $284 million and even further for 2009. A whopping 37% reduction a time Oklahoma was riding the wave of an energy induced economic peak. This didn't include the larger drop in personal income tax for the wealthy which is not broken out from all personal income taxes.

Those involved in the scheme receive and sell the tax credits immediately after filing a statement of intent. There are delays of as much as 2 years before the first start showing up as lost revenue. Then another 3 years minimum, typicall more before all are used. With the secrecy it will take many more years possibly 5 to 10 years before the impact is so overwhelmingy obvious the general public will finally realize something is amiss. By that time the public will be totally helpless. Lawmakers include language in the law that prevented the state from recovering the money. To make matters even more insulting the maximum punishment allow if any are later convicted is - are you ready for this - they will no longer be able to participate. That is after lawmkakers and other state officals have potentially benefited by several million each. They will not be allowed to have more, but they can keep what they have.

For all the public knows, Oklahoma officials could very well be those investors receiving public funds to pay their entire cost to invest in new business ventures, plus receive an immediate profit equal to 100% of the amount taxpayers gave them to invest. There is nothing in Oklahoma law that prevents this.

Could this be the reason public officials so vigorously oppose making this information available to the public, in direct defiance of the states opern records act?

We have included a series of news articles describing the public out cry in 2006 that pressured state lawmakers and the governor promise to fixe the loophole. Key media news articles

Then we will show evidence that started to appear showing the abuse had significantly increased rather than ceasing. Evidence of at least $1 billion more since the loophole was claimed to be closed.

We divide the story into categories to follow the flow of a very complex scheme.

  How the loophole is used to reap huge unearned profits. More
  Uncovered costs and where some of the money is going. More
  Hidden PAC money surrounding lawmakers' failure to close the loophole as promised. More
  How the program is covered up and protected. More
  A guide through this very complicated law showing how the entire scheme was created as a state law. More
New
Come blog Club Crony

10 Things every Oklahoma taxpayer should know!

Recent press releases

December 08 -
Add a Colorado resort area lawsuit to an Altus group's ever widening net of financial misdeeds!
Business skims employee withholdings, after being used to obtain $66 million in state funds!
How a program promising a future is stealing that future.

November 08 -
In what pockets did $57 million in public funds disappear? State officials?
Oklahoma's economic program declared flawed and a scam by 9 other states.

October 08 -
Why did OK lawmakers fail on two occasions to close a huge tax loophole?
Hiding the use of public funds, the unmistakable mark of wrong in government!
Venture's financial troubles expose tax credit incentive program fraud and abuses.
Where is $189 million investment used to justify $66 million in tax credits?
Tax shelter operated by secret arm of a bank and church supported non-profit LLC

September 08 -
OK's secret state income tax avoidance scheme, for the wealthy and corporation!
Is the Oklahoman covering a Gaylord family connection to tax credit abuse?
$4.7 billion first revealed! OK Tax credit cards gone wild! State officials trapped and can't stop!
Did OK officials pocket half of $90 million taken to buy billboards in other states?
Oklahoma and Alaska using same play book to justify sweetheart deals
Golden Goose Tax Abuse, Club Gooses and Goosed Gooses
Who are Oklahoma officials covering up for in a $Billion tax credit scam?
Aircraft manufacturer needs $1 million to pay employees after spending $66.3 million in Oklahoma tax credits.

August 08 -
Did these LLC's use money laundering and loophole to take $470 million?
Did $325,000 in hidden PAC money keep tax credit loophole open?

July 08 -
Revealing more Oklahoma Tax Credit Fraud - dirty little secret 12
Open letter to Oklahoma state lawmakers and governor! Crooks or cowards?
Oklahoma Governor and Lawmakers -- negligent, deliberate ignorance or lying?
Deliberate ignorance, deliberate neglect and cover up, paying Oklahoma officials $millions?

June 08 -
The Cover Up, creating the legal means to hide official involvement!
The public misled into believing the tax credit abuse loophole was closed?
Are Oklahoma officials profiting from business investment incentive program?
Oklahoma's "audit immune fraud", skimming $100's millions in tax Revenue.
OK officials reaping huge profits selling tax credits

May 08 -
Suspicious campaign contributions? Tax credit loophole remains open!

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