December 18, 2009

Openbooks, praised by Oklahoma and national media, to be one of the state's greatest steps forward, was turned into a means to mislead and deceive, rather than inform the public. A recent article revealed Openbooks was falsely reporting a handful of tax credit programs cost the public $68 million. Other OTC documents, uncovered, reveal the actual cost was more than $370 million, for only part of what the $68 million was reported as covering.

The same article exposed the huge discrepancies found in Oklahoma's $5.4 Billion, Tax Expenditure spending reports (TER). Equally large differences between the TER and Openbooks reports; and a third, the IRC Capco report which is significantly different than either of the others. All three reports created by the Oklahoma Tax Commission, were found to be discrepancy and falsehood ridden.

Here we will expose even more angles to false reporting including methods used to hide the fact evidence reveals the two programs reported to cost nothing, received at least $136 million (potentially more than $281 million). The entire $136 million going directly in the pockets of what appears to be state officials without the public receiving one penny, product or service in return.

As a review methods used to obtain $100s million in unearned public funds includes submitting unchallenged false investment claims. Some filing false claims submit fake loan documents to support the claims, while others appear to have never bothered to provide supporting documents. Some receiving unearned tax credits might invest a fraction of the public funds received to give the appearance of investments. Yet those businesses soon failed. Others never bothered give an appearance of investing. Some receiving tax credits used the credits they need to avoid paying state taxes and sold the remaining for cash, allowing others to avoid paying state taxes.

The most telling of all programs and the two programs I submit state officials use to receive their payoffs are programs OTC goes to extremes to misrepresent and hide. The two subject tax credit programs are listed in A. below; and two confusingly similar and related credit programs in B.

A. Small Business Ventures (SBV) and Rural Small Business Ventures (RSBV)

B. Small Business Capital Company (SBC) and Rural Small Business Capital Company (RSBC)

SBC and RSBC are found to be reported, but falsely reported. SBV and RSBV are not found to reported any place on any of the OTC reports mentioned above, the only reports available to the public. There is a vague entry on the IRC Capco reports labeled "in conjunction." A close examination of the 4 programs above reveals the words "in conjunction" are only found buried in the details of the SBV and RSBV programs.

The only place these programs are reported we find disguised. Capco reports for 2006 - 2008 reveal $470 million labeled "in conjunction" investment claims, for which Mastin authorized $136 million in tax credits. Other documents show "in conjunction" investment claims for 2005, increased the investment claims to $951 million and tax credits to at least $281 million. 2005 coincides with the first of the fake loans provided by First State Bank Altus. 2006 and 2007 also included fake loans.

It was under the "in conjunction" category where we find* Oklahoma Industrial Venture Capital Co, one of the Altus Ventures group of LLC's reported investing $132 million, in 2006, and discovered to be part of the fake loan package. Note* this information did not appear until an updated 2006 Capco report surfaced, shortly after the FDIC issued its January 2009 Cease and Desist order against and were auditing the Altus Bank.

Previous articles have described the unusual measures to hide the identities and amounts received in fraudulent tax credits. The measures go far beyond that used by the federal government and all other OTC and state programs requiring confidentiality.

OTC went far beyond even those unusual measures for the SBV and RSBV tax credits; and resorted to methods to prevent the public from learning not only the identities and amounts received, but the fact the programs were ever used. This arrangement allowed some to receive at least $131 million, and evidence suggests more than twice that amount without ever investing one penny. Note: Oklahoma has no laws preventing public officials from benefiting from public funded programs like these tax credit programs.

The question remains who were those receiving such huge amounts of unearned public money? Who would public officials risk involvement in allowing the use of false claims to take $100s million in public funds; disregard their responsibility for oversight and accountability; and allow criminal activities to prevent revealing who was benefiting?

We are expected to believe officials who feel they can legally benefit without investing one dime; would risk being caught without receiving one dime, while others were reaping these huge unearned profits?

Let's be clear about one thing - Oklahoma officials involvement in fraud and corruption has already been established, this is showing the means state officials use to receive their cut of stolen public money.

It is time we stopped treating our state officials as royalty and above the laws that apply to the taxpayers. It is time we realized our state officials lack integrity, and are destroying our economy.

Finally it is time we pulled our heads' out of that part of our anatomy where the sun never shines, and held public officials accountable, and not infallible!