OTCs involvement in tax credit fraud is tipped by ignoring the obvious.cfm
April 23, 2009
1) A small unknown LLC, Oklahoma Industrial Venture Capital Company (OIVCC), a subsidiary of the Altus Gang, which is currently under investigation by federal agencies, filed a 2006 claim stating it invested $200 million in one company and received $60 million in tax credits. The Oklahoma Tax Commission apparently made no effort to verify even the conspicuously obvious failures of the claim to qualify.
One obviously suspicious factor was a requirement that OIVCC could not have more than 25% invested in any one venture. This would mean OIVCC have another $600 million invested in other Oklahoma business ventures. Something that would be so highly unusual it demanded this claim be verified.
2) Another company, Scissortail, submitted a claim taking 540% in upfront profits. Guarantying investors an immediate a 200% profit, while keeping 340% in profits.
Phrasing the Scissortail deal another way: in October 2008 a group of investors agreed to invest $5 million in a venture investment plan. These investors received $10 million in tax credits during that same October 2008 allowing them to avoid paying $10 million in 2008 tax credits. The investors could sell tax credits they would not need for cash. That left Scissortail with its $22 million in immediate profits, convertible to cash.
3) Neither OIVCC, Scissortail nor at least 10 other investment schemes met the money invested at risk requirements to qualify. It is impossible to find any risk in a guaranteed profit, let alone an immediate 200% profit! For any who may not immediately catch the obvious, a simple spreadsheet exercise would quickly expose the problem
How can anyone get by with this?
Using the same common elements found in all frauds and scams: cover-up, deception and "plain ol' lies," coupled with an apathetic media, public and legislative body. Using the same common elements found in all frauds and scams: cover-up, deception and "plain ol' lies," coupled with a heavy dose of apathy that has infected the media, public and legislative body. Oklahoma officials, to cover a hidden agenda, are justifying secrecy and reporting misleading numbers to hide this state's tax credit fraud under the pretense that without secrecy it would be too difficult to find willing investors.
If one ran an ad in the Wall Street Journal offering one of these investment opportunities promising a state guaranteed and immediate 200% profit, while clearly stating investor identities and amounts invested would be posted on a highway billboard for all to see; this state would see a rush of investors that would make the 89 land run look like a stroll in the park. This ridiculous justification can leave no doubt the secrecy claim is simply a ruse used to hide another hidden agenda. Using their offices' to profit at the publics' expense!