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Openbooks - False, misleading and missing information - covering up tax credit fraud.

November 11, 2010

  • Refundable tax credits: Way to skim, spend and share with friends. View
  • Reasons for authorities failing to act. View
  • Key element of fraud, kept off the radar, and gone unnoticed. View

cover-up is the key element of fraud, embezzlement, and public corruption. Wrong found in the tax credits section of Openbooks are unmistakable acts of public corruption, cover-up. Other new information that will shed new light on reasons for cover-up, will soon follow.

Misuse and misreporting on Openbooks includes, omitting key hidden spending information such as: non-appropriated funding, relevant tax refunds(1), and key tax credits(2); in addition substituting wrong information for tax credits listed; withholding tax credit reporting for at least two years; and disabling key features on the tax credits section of Openbooks to prevent exposing total tax credit cost that reveal information provided by OTC to committees, the press and published elsewhere are grossly understated, and misleading. For detailed explanation View more. For reported, totals. View more

As a result of missing information the total of $451 million listed on Openbooks, is considerably lower than the actual cost. Examples of withholding information: 2007, 10% reported, as required, in 2008; 42% withheld until 2009; and 48% was withheld, until 2010. For 2008, 4%, was reported as required, in 2009; and 96% withheld, until 2010. The rest is unknown? One case of missing $60 million.

Projecting 2008 and 2009 using the 2007 model, would raise the 2007-2009 total to $630 million. That only addresses delayed information, and not missing information.

Obvious motives for cover-up: in addition to hiding giving away of $100s million in crony-welfare, using tax credits and tax refund checks, to hide unqualified and fraudulent claims; hiding the identities of many receiving fraudulent payments; and to prevent anyone seeing the big picture. Preventing the public form recognizing there are no jobs created or economic growth; or how Oklahoma tax credits compare with other states.

Other helpful information.

Refundable tax credits: Way to skim, spend and share with friends.

Using refundable tax credits is nothing more than a means to spend tax revenue before the revenue reaches the state's system for financial tracking and accountability. Spending the same taxes, writing the same checks, only off the books and in hiding. A way to abuse, defraud, and defeat balanced budget laws, then blame budget shortfalls. Peel, steal and not reveal.

It is only reasonable those that have been hiding wrong for years, would not just roll over and expose what they had been hiding.

Reasons for authorities failing to act.

Knowing these numbers do not include information missing from Openbooks, when 440 of Oklahoma's wealthiest have been receiving on average $500,000 per year in welfare; and 5,500 receiving $50,000 each per year in welfare checks; did we believe they would stand by to have their welfare checks stopped, to avoid exposing? Just keep hiding, who is going to interfer? It only cost them a small fraction of their welfare checks, to control every elected official, through campaign donations.

Key element of fraud, kept off the radar, and gone unnoticed.

What is too often dismissed as irrelevant details, when discussing investors receiving $2 in tax credits for each $1 invested, are in fact the tell-tale signs of fraud. The investors receive their $2 in tax credits the day their money is invested. They can have a buyer for the tax credits lined up, or file a tax refund claim and receive a state issued check. The profits are theirs to keep, regardless of what happens with the investment. The law creating the program specifies the credits are instantly valid when the investments are made; IF the investments meet eligibility requirements and maintain eligibility for the required 5 years. The law provides provisions for waivers to allow the investors to keep the tax credits, under certain conditions.

Hand the middleman $1 million and he hands you back $2 million in tax credits, you exchange for cash. That's the way rigged slot machines work, not investments. Tax credits are the slot machine tokens exchanged for cash.

On the surface it could theoretically work, but it would take more than divine intervention. None ever fulfill eligibility requirements. The amount of funds claimed to be invested are never meet eligibility requirements. That is the short way to cover all of the shell games used to disguise the schemes. Waivers are automatically given while ignoring eligibility requirements. This is what has to be kept hidden to prevent anyone from learning what is occurring.

References:

(1) excluding refunds issued for overpayment of taxes.
(2) Small Business Capital Formation Incentive Act 2357.60 thru 2357.65 and Rural Venture Capital Formation Incentive Act 2357.71 thru 2357.76; and Venture Capital 2357.7

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