NORMAN OK (October 9, 2008) - Broke investment raises question: where is $189 million investment used to justify $66 million in tax credits?

Nick Baker
Fax: 214-572-7260
Contact Email: nite@prowlingowl.com

Where is the $189 million investment claimed to justify $66 million in tax credits?

Were the "so called investor/shareholders" properly informed who was obligated to repay the $189 million loan?

Additional evidence has surfaced raising questions over what happened to $189 million of the total $221 million Altus Ventures (AV) claimed it would invest in Quartz Mountain Aerospace (QMA) to justify taking $66 million in tax credits, when only $32 million was invested. Ref. reported by AP, April 17, 2006, and carried by state papers.

In late August 2008, QMA, having already exhausted the $32 million, ask the City of Altus for a $1 million loan to pay wages and salaries while QMA was seeking new financing. The city authorized $200,000.

Question: What happened to the remaining $189 million (a loan) AV claimed was to be invested to qualify for $66 million in tax credits? Why aren't state officials investigating? Why have state officials ignored wholesale abuses and violations in this program for over 10 years?

Question: Were the "so called investor/shareholders" properly informed who was obligated to repay the $189 million loan? The law states "The credit may also be claimed for funds borrowed by the pass-through entity to make a qualified investment if a shareholder, partner or member to whom the credit is allocated has a legal obligation to repay the borrowed funds&." It is not unreasonable to assume those investors never ask the questions they didn't know to ask. Note: AV served the role of the pass-through entity in the QMA venture.

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Disclaimer: The information provided here is not intended to be legal advice, but merely conveys general information related to the issue.