Did Suspicious campaign contributions Keep Tax credit loopholes open?
See Hidden PAC Contribution
Or, as much as 75% of Rep. Kevin Calvey's total 2006 campaign donations, came mostly from what appears to be those active in the
investment community, while the other 3 major candidates Fallin, Hunter and Cornett each re
Most of these questionable donations came at the time Rep. Kevin Calvey, chairman House Revenue Taxation Committee, was involved in crafting legislation
introduced, by others, to close a "so called loophole" being used to divert huge sums of future tax revenue to unknown private entities in the investment
A loophole we now learn was never closed, resulting in significant increases in tax credit abuses. A loophole only available to certain venture Capital
companies and investors.
Calvey, a long shot, was needing major campaign funding to have any hope of over taking the more popular candidates. How better to get the ear of
Calvey than those making millions, to keep the loophole open, than donating nearly $400,000, by far, the largest donations to Calvey's campaign?
A close examination of the legislation, something lawmakers failed to even read, reveals the loophole was never closed.
Lawmakers claimed they had no time to even read the bill. The bill originating in the Senate was held by Calvey's committee
until the last day of the session when it suddenly reappeared with a 50 plus page amendment, as only one of a large stack of
last minute bills that are never read or discussed.
Obviously the public, intentionally denied access to information about the program, is left helpless to learn what is happening. Mistakes do happen and in September 2007 a private letter from Capital West to wealthy investors found its way to the media revealing Capital was offering investors an opportunity to invest in a new Foxborough fund promising potential investors $2 tax credits for every $1 invested. The kind of promise that a large well established investment firm, that if it couldn't deliver on the promise would most certainly face lawsuits, an SEC investigation, and lost clients for promising something it could not deliver. See the letter.
NOTE: The issue of a state law having been corrupted to facilitate fraud in not within the jurisdiction of the Federal Security and Exchange Commission or the Oklahoma state Securities Department, as state officials tried to pass off in an effort to whitewash this letter. Nor do they have the resources. SEC and state Securities only serve the purpose of insuring those promoting investments are providing full disclosure, have done due diligence and not misrepresenting the investments.
Note: This was the second attempt to close the same loophole. One
Odd donor/donation patterns.
A detailed analysis of Kevin Calvey's Top 150 Donations/Contributors (found at campaignmoney.com) for his 2006 US Congressional campaign reveals
some very unusual donation patterns.
Below is a graph showing campaign contributions received by four candidates
from those involved in both sides of the investment business and others outside Oklahoma
|Candidates compared: Calvey and the three major candidates surviving the 2006 District 5 primary elections.
On still closer examination
There is more!
A closer examination of the donation patterns of donors, especially outside Mr. Calvey's district
show significant difference from their traditional donating patterns, including but not limited to.
- Many gave more to Calvey than their own candidates
- The most the donor had ever donated to any single candidate
- In some cases the only donation for 2006 or for other years
- In some cases significantly larger than their previous donor patterns 2006 or for other years<
The contributions from the donors in question, many out of district and state, were a significant variation from their typical contribution patterns.
In most case donating more to Mr. Calvey's campaign than their own representatives.
Or,in some cases donating more to Calvey than ever to an individual candidate.
Typically these donors would give a combined group contributions, e.g., to a PAC.
Other notable variations in donor patterns include, but aren't limited to:
Percent of total contributions Received
|From in state donors
|From out of state investors
|From in State Investors
|While bill under Calvey's influence
|The worst case!
|The biggest known abuser!
Defendants in financial wrong doing lawsuits!
Most prominent in this odd pattern is Altus Venture
the biggest known abuser of the tax credit loophole, who along with other associates have been
named defendants at least three cases of financial
During the time the legislation was under the influence of Calvey, Paul Doughty the President of both Altus Venture and First State Bank Altus
delivered a donation of somewhere between $21,600 and $38,600*, bundled from several others directly involved with Altus Venture.
In defiance of all conventional wisdom, ethics and sound judgment, Calvey chose Doughty as one to advise on writing
the legislation. The bill was then held until the very last day of the session and rushed through both legislative bodies, when lawmakers
had neither the inclination or time to read, let along evaluate.
Note*: Various records show three of the Altus Venture donors Paul Doughty, his wife Jane Doughty and F. Don Anderson
all donated as much $10,500) each in March 2006. $2,100 is the maximum allowed for each of the primary, runoff and general.
Then other entries, which appeared some later, show all but $2,100 was eventually returned. There were other donors with similar entries.
The significant issue was: what was the understanding of both the donors and the candidate at the time the legislation was being written.
Reference source: Campaignmoney.com
150 Donors/Individual Financial Contributors (contribution amounts of $200 or more).
Next see A documented case of tax credit abuse fraud.