Like the 1,000s of other pages of evidence uncovered and descriptions of crimes on this site, this web page is only one part of a massive multi-state entanglement of government corruption and cover-up. See size
Note: Artificial loans are similar to a Counterfeit loan.
Misrepresenting investments to get $2 in tax credits for each $1 invested.
Sections | Loophole elements in the Rural Capital Formation Incentive Act |
Section 18.2.d | "Capitalization" means the amount of any funds loaned to the qualified rural small business Capital company |
Section 20.B.4.a & b |
1. Authorizing taking tax credits worth 200% of what is claimed to be invested in new business. Note: The area of the law addressing the 200% limitations is ambiguous leaving it unclear, what, if anything, is in fact limited to 200%. |
SECTION 2.G |
The credit allowed on funds borrowed by the pass-through entity to make a qualified investment. Failing to prevent the use of artificial, dummy or fake loans. An act of omission -- failure to include language clarifying how a loan can to be used. Leaving it "not illegal" to use artificial loans to inflate the claimed investment up to nearly 7 times the actual money invested at risk. 6.66 times the allowed 30% in tax credits comes to 200%. Note: The area of the law addressing the 200% limitations is ambiguous leaving it unclear, what, if anything, is in fact limited to 200%. |
Section 2.B & G Section 19.B & G Section 20.B & E |
Authorizing the use of borrowed funds Subtley changing the investment requirement from cash (money at risk) to a new term "qualified investment" and defining "qualified investment" to include using borrowed money. What was "not illegal" was using artificial loans to inflate the claimed investment up to nearly 7 times the actual money invested at risk. |
Section 19 | Specifies 30% tax credits. |