Fraudulent investment fails within 16 months; OTC allowed keeping $2 for $1 tax credits!
March 11, 2010
Oklahoma Tax Commission, authorized REI New Markets Investment to inflate a $6,150,000 loan, and claim it was a $45,400,000 investment, and receive $13,845,000 in tax credits.
October 30, 2007, OTC authorized this bogus claim, misrepresented as an investment in Lindmark Outdoor Advertising. Re: $45 million fraudulent out of state tax credit claims, involving OTC!
16 months, later, February 23, 2009, REI New Markets Investment, informed OTC, Lindmark Outdoor Advertising, had defaulted on its loan, never an investment as claimed, and was being taken over by the company that provided the loan. REI New Markets Investment requested and OTC ruled, the investors be allowed to keep the $13,845,000 in fraudulent tax credits. That is not exactly how the requested was worded. That was the plan, exactly what occurred, and any reasonable person should have caught.
The actual wording, found on the publically available documents, is "BANK" was the investor that loaned $6,150,000. "NEW COMPANY" would acquire Lindmark Outdoor Advertising, by taking over the loan. The real names, provided on another part of the request and ruling, which OTC, unlawfully redacts1 (blacks out as seen below), on documents released to the public.
Searching SEC filings, reveals Gladstone Capital Corp, reported:
- During 2007, it invested $10,000,000*, in Lindmark Outdoor Advertising, in the form of a loan., * It is not unusual, rather typical, fees would reduce the amount to $6,150,000 at this point.
- March 2009, the Company acquired Lindmark Outdoor Advertising, LLC. Acquired by, by setting up a front company, Lindmark Acquisition, and simply taking over its own loan.
A situation specifically disallowed by law, for obvious reasons; but falsely claimed by REI and authorized by OTC. All part of the scheme, and the same scenario, we find over, and over. False claim, business fails for lack of funds, OTC authorizes keeping the tax credits.
"NEW COMPANY will be a wholly-owned subsidiary of corporation ("CORPORATION"). CORPORATION will be owned by The stock of CORPORATION will not be owned by (i) a person, or an entity controlled by a person, that made a qualified investment in LLC that provided funds for use by VENTURE, as provided in 68 Okla. Stat. § 2357.74B(A)(2)(a)(l), or (ii) a person, or entity controlled by a person, that made an investment in conjunction with a qualified investment made by LLC that provided funds for use by VENTURE, as provided in 68 Okla. Stat. § 2357.74B(A)(2)(a)(2)."
In simplest form Gladstone loans $6,150,000, gets $13,845,000 in tax credits. The investment like most of these scams, receives only a fraction of the claimed investment, but burdened with a huge loan; facing near term, virtually certain failure. Business fails, Gladstone then picks up the failed business for the $6,150,000, or less than one-half what was received in tax credits. A company that supposedly just received $45,400,000.
As we previously reported, from the get-go, this was nothing but a paper shell game; that boiled down to Gladstone passing $6,150,000, through, one of OTC franchise laundromats. OTC always rubber stamps, allowing some to scam $13,845,000 in tax credits. Now OTC has polished off the scam, by signing off on, a second obviously, false claim. A mere 16 months, to make all of that money. Actually, the tax credits were in the hands, of those benefiting, to stay, in October 2007.
Oklahoma tax payers received nothing, but another $13,845,000 soaking, and a failed business. What little benefit that occurred went to other states. The part of the $6,150,000 remaining in assets, includes billboards bought in other states. Oklahoma did not benefit.
Make no mistake, state officials, get their share of these fraudulent tax credits. Stay tuned, how that works, is coming up.
Oh, by the way, did I mention, this is all unlawfully withheld form the public? Go figure?
It is the secrecy, stupid!
Then again, $13,845,000, is chump change, compared to the $127 million, Altus Ventures and corrupt state officials walked away with, leaving nearly 100 Quartz Mountian Aerospace employees, to be laid off, jobless and never to receive their hard earned last month's pay. Then learning Quartz Mountian Aerospace had not been forwarding payroll withholdings, leaving employees with no health or dental insurance, or unemployment. State offficials never blinked. Just continued ignoring, as always.
redacted (blacked out) by OTC to hide the deed. In direct violation of Oklahoma's Taxpayer Transparency Act, (better known as Openbooks), that specifically requires the identities of all parties involved and amounts be made public. They will all get their piece of the pie if they don't rock the boat! That boat has remained as steady as a the Rock of Gibraltar, in a sea of hurricanes.
Lastily, most of this information, eventually, shows up online. Something, our corrupt state government and cozy crony media, that has so long controlled information flow, has yet to comprehend. Then it only takes a few clicks of a mouse to uncover, the truth.
See rest of story at http://prowlingowl.com
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