More false tax credit claims. One filing bankruptcy as the tax credits were being used on tax filing reports!
October 6, 2009
Oak Hills CAPCO received $6.2 million in tax credits by claiming to have invested $20.2 million in Ultimate Equipment Co in 2007 and 2008. Then Ultimate Equipment was preparing to file bankruptcy during the week of April 15, 2009. The same week the "so called investors" were filing their tax returns and using the tax credits for the already failed investment to avoid paying state income and gross production taxes.
Oak Hills CAPCO and Oak Hills Capital Company are two more of the Oak Hills' family of LLC's recently reported to have received $22.6 million in tax credits by claiming it invested in seven LLCs, all sharing the same, mini storage unit address. After 3 years no evidence can be found to show any of the seven every materialized.
This brings to at least 10 false Oak Hills' claims, where each claim includes multiple misrepresentations of qualifying criteria. Two of the new claims went to other members of the Oak Hills' family of LLCs.
Ultimate Equipment Co was the false claim investment made outside the Oak Hills' LLCs, that filed bankruptcy. The website details how four separate claims were involved.
Examining Ultimate Equipment's bankruptcy filings and Oak Hills SEC filings reveals Oak Hills' misrepresented as a minimum the following, qualifying criteria, in the Ultimate Equipment claims.
A) Amount invested; B) Type of business invested in; C) Location to receive 30% rather than 20%; D) Percentage of interest acquired. Only acquired 1% instead of the required 51%; E) Now we have a failed business that failed to last the required time.
Research uncovered claims for two more 2008 investments, Native Warehousing, LLC ($4,774,000); and Native Warehousing, LLC Series 2008 ($7,185,037), involving many of the same false claims.
The Oklahoma Tax Commission tax credit report contains major discrepancies between amounts reported to have been invested by Oak Hills in 4 businesses during 2008. Adding the numbers gives $19,513,071 in one place and $29,067,071 in another. A $10 million mistake that would reap an additional $3 million in tax credits. As with lies, discrepancies and inconsistencies are the DNA of false claim.
It gets even more ridiculous. Oak Hills' SEC filing reported Oak Hills received $2.35 million in investments for 2007. Then shows investing $2.35, $42.3 and $43 million in three unidentified investments; and paid over $15 million in salaries, commissions, and unidentified expenses.