Metafund found using a hidden subsidiary to claim tax credits,
after court ruled Metafund ineligible!
MetaFund, a non-profit, was ruled ineligible for tax credits in a 2004 ruling, later reaffirmed by the Oklahoma Court Of Civil Appeals; 2007 OK CIV APP 32, 159 P.3d 1142.
MetaFund has been found to be using hidden mirrored subsidiaries, to structure investments that could potentially claim tax credits amounting to 69% (30% state, 39% fed) of its investments, retroactive to 2008. The mirrored entities are two MetaMarkets OK, LLCs. One registered in Delaware and the other in Oklahoma. Mirrored entities and accounts are commonly used for deception and disguising financial activities.
A little digging reveals MetaMarkets OK, LLC applied for and received, federal income tax credits amounting to 39% of its investments. The 39% tax credits, which includes 2008 investments, were obtained through the US Treasury's, Community Development Financial Institutions'; New Markets Tax Credit (NMTC) Program. NMTC requires: substantially all of the investment must be in low-income communities and depressed areas; the same as the MetaFund charter.
MetaMarkets OK, LLC, claimed the 30% state share* of those tax credits on at least $10.8 million and more likely $24.4 million invested in the new world class 18 hole Patriot Golf Course located in Owasso. The Patriot Golf Course is the center piece of the new Stone Canyon luxury home addition, where homes are listed in the $400,000 to $600,000 range. *Info on federal claims have yet to be made available.
Note: Oklahoma Tax Commission tax credit reports only attributes the amount of each investor's share of the investment needed to meet minimum qualifications for tax credits. Minimum requirements are to purchase 51% ownership in the investment. The remaining investment is reported as one unexplained amount under "Amount invested 'in conjunction.'" OTC reports show the majority, (in some cases more than two-thirds), of some investments, including MetaMarkets, as "Amount invested 'in conjunction.'" That looks highly suspicious since they are claiming the lesser part of the investment purchased the largest share of interest. It is reasonable to suspect "in conjunction" is being used to hide the most sensitive identities.
MetaMarkets listed investing $10.8 million in Patriot Golf Course in 2007 and 2008. Prorating out a proportionate share of the "Amount invested 'in conjunction'" would have MetaMarkets investing $24.4 million in Patriot Golf Course.
This is even more problematic given only, a suspiciously low, $3 million of MetaMarkets total investment was broken out and listed as needed to qualify or acquire 51% interest. That $3 million had to be invested and the 51% ownership in hand before the tax credits was eligible to be claimed and used. OTC reported that occurred during 2007. That left only 49%, at most, for the remainder of at least $10.8 million shown, but more likely $24.4 million. There is another fly in the ointment: the 2008 investment also had to acquire 51% interest. There is no carry over effect: that is the way it is and there are legitimate reasons. More discrepancies!
This is confusing, but that is the point. The secrecy and misinformation are intended to confuse and deceive. Something we find throughout all the reports are the inconsistent and meaningless numbers that never compute, never fit or make sense. That works the way the cover up was intended. That leaves those unfamiliar with the subject matter lacking the confidence to trust what they see. Works like a charm and has been working to the tune of some $400 to $500 million in fraud. All under the protection of secrecy, false reports and -- let's call a spade a spade -- uninformed ignorance on a massive scale. The unwillingness to spend a little time to learn and understand: while willing to hand the key to our state treasury to unidentified people who have unfettered access and no one is allowed to see who is going in and out or count the money being taken.
What a pitiful testimony to where we have descended in our neglect and irresponsible cultural. What a shameful legacy to leave our children of how our apathetic attitude allowed our elected officials to govern in an orgy of corruption stealing the future of these same children.
Then we have the case of MetaMarkets claiming 30% rural tax credits for supposedly investing in Public Supply Company. The only facilities that could be located for PSC are at 1236 NW 4th, Oklahoma City; and 10934 East 55th Place, Tulsa. Both addresses are located in urban and not rural areas. Meaning at most a PSC investment would only qualify for 20% tax credits as opposed to 30%. Based on the same "in conjunction" ratio discussed above this would give MetaMarkets an extra unearned $1.2 million in tax credits.
MetaFund's board and partners are purportedly made up of leaders and representatives from charities, churches, banks, state and federal agencies, and other civic organizations; involved with and ostensibly to champion low-income communities and depressed areas in need of development. Yet these investments suggests these very people have stood by while financial assistance intended for their causes have been diverted to build a luxury golf course in a high dollar community and allow excessive unearned tax credits to be funnel into the pockets of those they are involved. All accomplished under hidden mirrored LLCs.
It is more than fair to question to ask what these so called champions of the underprivileged received in return. The same question that every state officials must eventually be held accountable.