SEC (Securities Exchange Commission) filings reveals Chaparral Energy received $30 million in false claim tax credits. All for what appears to be a $15 million investment. For additional details and clarification View more
To illustrate the discrepancies this new information is compared with information already known from Oklahoma Tax Commission reports, i.e., Altus Venture claimed investing $221 million in Quartz Mountain Aerospace, when in fact only $32 million was invested in QMA Altus Venture received $66 million fraudulent tax credits.
A. March 30, 2006, the same day the Tulsa World first reported Altus Venture's involvement in tax credit abuse Chaparral Energy's filed an amendment to its (at that time) recently filed $345 million IPO. The amendment disclosed Chaparral had bought a 30% interest in the Altus Venture Capital Fund V for $10 milion.
Chaparral's September 2006 SEC filing stated in vague terms, Chaparral bought interest in another unnamed VCC firm for $5 million, bringing the total to $15 million in tax credit investments. Chaparral's latest SEC filing shows they have used the entire $30 million as Gross Production Tax Credits; allowed for investments made prior to November 1, 2006. OTC does not reveal who takes how much in GP Tax Credits.
More later on how the $15 million transitioned to $30 million in tax credits on SEC filings over the next 3 years. That is an issue for the SEC to address, here the primarily goal is providing evidence of the false tax credit claims used to defraud state income tax credits.
B. Altus Venture's Capital Fund V SEC filing, covering the same period stated the fund invested $22,123,339, during 2006. QMA was the fund's only investment reported on the OTC tax reports. There is the huge discrepancy. Neither Chaparral nor Altus Venture reported that way, and it doesn't change the false claim. When it comes to financial frauds and scams the booty is not always divided proportionally.
The point here is the SEC claims are more in a series of documented evidence proving the false tax credit claims and who used those tax credits. Evidence that state officials have repeatedly ignored pursuing?
Chaparral's $30 million only accounts for one-half the $60 million in falsely claimed tax credits on one claim.
Later the bigger picture that surrounded and ramifications that ensured from the Tulsa World exposing Altus Venture's involvement in tax credit abuses.
Note: Chaparral's investments has been corrected to reflect $15 million, not $15,000. Providing a return of 200%. That does not alter the issue that investors receive a guaranteed 200% profit regardless if the business fails. Which in case, this investment, was a total failure leaving many employees failing to receive their pay and income withholdings having not been forwarded to proper authorities. Withholdings including unemployment and health and dental insurance. In addition, to losing their pay employees learned they had no insurance and could not draw unemployment. Yet those receiving 200% profits were allowed to keep those profits.