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Editors Note: This is the so called "Grandfather clause." Which in itself is not too unreasonable,
but was misused. The misuse is explained elsewhere, but it basically some were allowed to slip in entirely new ventures that were
not approved prior to March 15, 2006. This resulted in a flurry of active amounting to another $330 million.
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Owl: Now we learn this act by the Governor was a meaningless effort to give
the appearance the Governor was taking a stand against abuse. Later it was revealed
the abuse is still going strong and one of the Governor's biggest supporters
Barry Switzer is right in the middle the abuse.
See
"Tax credit letter causes public outcry"
$300 million more in abuses.
Why meaningless? This is covered in detail elsewhere on this Website. In addition the comment in the article
"forcing candidates to move forward without any assurance that they would actually qualify for
tax credits", although true is of no significance. The real motive for obtaining a
"pre-approval letter" if for the protection of those behind the abuse when the SEC or IRS
comes calling.
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$330 million in tax credits given, in blank checks, after the practice was outlawed.
Oklahoma Lawmakers passed legislation, SB1577 and the Governor signed into to law, that would effective immediately , in their words "plug the tax credit abuse loophole" that has been bleeding the states funds.
SB1577 stated "this act shall take effect and be in full force from and after its passage and approval." Making the law effective June 7, 2006.
Information has came to light the Oklahoma Tax Commission quietly continued accepting new
applications totaling as much as $330 million as late as November 2006 for certain investors.
An anonymous source informed us that attorneys were brought in from out of state to
create these illicit applications. Why? One can only assume the abusers couldn't risk
an in state lawyer seeing the wrong and turning them in.
The applications were "all accepted" as meeting all requirements on behalf of the
state by Tony Mastin. A few months after Mr. Mastin illicitly accepted these applications on
behalf of the state he was promoted to, Agency Administrator, the top post in
the Oklahoma Tax Commission.
Note: We use the term "accepted" as to what is commonly thought of as being approved. There is
a significant difference. There was no approval required. To protect against any future charges
of neglect or malfeasance Mr. Mastin signed off that the applications were being accepted
based on the assumption that everything provided in the application was true. And, the Oklahoma Tax
commission reserved the right to perform an audit or evaluation.
What does this all mean? The venture capital companies have their document to use in their defense
if and when the SEC or IRS comes knocking. Mr. Mastin has his document to use in his defense in case
a different administration or the FBI starts an investigation.
Another case of corrupt state officials misusing their authority to override the law to
facilitate fraudulent receiving of public money. Protecting themselves while turning their backs.
The end results. State Lawmakers and the Governor claim to have stopped the abuse
was just another ruse to take the heat off and allow their cronies to steal as least another
$500 million before the public started realizing the abuse is continuing.
There has been no money set aside for these gifts. The money will have to be taken from
other long suffering from underfunding.
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