Task Force tax credit study a whitewash to cover-up fraud, or arrogant and clueless politicians?
November 2, 2009
This will reveal how: 1) the Task Force has totally disregarded evidence supplied on numerous occasions proving tax credit information under study and supplied by the Oklahoma Tax Commission was falsified to misrepresent the facts; and 2) this committee's task has been narrowly defined to eliminate studying the most abused tax credit programs.
There was ample evidence of false claims and reports long before legislation established this committee. Over a month before the Task Force was scheduled to meet it was supplied evidence showing Paul Doughty, former president of the recently failed First State Bank Altus, misused the bank to provide 6 fake loans totaling $642 million to: four of Doughty's own LLCs; and two Affinity Ventures LLCs. Affinity Ventures was a Robert McDonald deal. McDonald, at that time, was head of Capital West Securities, and later involved with Foxborough.
These loans were used to falsify claims the loan amount was invested. Mastin, having been made aware that only $32 million was actually invested in Quartz Mountain Aerospace; and that questionable loans had been used, still allowed Doughty to claim $421 million was invested: $221 million in 2005; and another $200 million in 2006. Note: Quartz Mountain Aerospace, closed its doors in late 2008 and recently filed bankruptcy
Within the last two weeks' some $320 million in tax credit claims have been uncovered, that Mastin had not previously reported. Evidence shows, for 2007, alone, $292 million in tax credits were taken while Mastin reported only $69 million. Now let's compare what Mastin reported to the Task Force, according to the Oklahoma Journal Record.
2007 transferable tax credits included (amounts Mastin report v amounts uncovered);
Venture capital credits - $27.5 million v $50.8 million
Coal credits - $5.2 million v $1.8 million
Energy-efficient home credits - $4.5 million v $6.0 million
Railroad modernization credits - $1.4 million v $2.8 million
Zero-emission facility credits - $2.2 million v $3.1 million
Now let's look at some of the tax credits Mastin never mentioned, but others are reporting as transferable.
Oklahoma Investment/New Jobs Credit - $21.6 million v $118.6 million Small Business Capital Credit - $4.9 million v $14.5 million Rural Small Business Capital Credit - $17.6 million v $56.3 million
The Task Force is to eager to limit it's scope, disregard evidence it is working with false information and hurry the study.