Update Weyerhaeuser's tax credits have double to $109 million
New information posted on Open Books reveals Mastin for a second time delayed by one year posting Weyerhaeuser was allowed $54.6 million more in tax credits for 2008; which was in additon to the $54.4 million for 2007.
Weyerhaeuser's $54.4 and 54.6 million in tax credits was the largest single users ever reported for one year; but according to Weyerhaeuser's own reports, it could not have qualified for more than $3.2 million, under the program reportedly used. It should come as no surprise OTC would withhold and/or reporting the use of $109 million in tax credits, it should not have authorized.
Weyerhaeuser's $54 million was only part of the more than $235 million, in 2007 tax credits, OTC failed to report. OTC only reported $64 million of more than $300 million in tax credits used to for 2007. The $300 million is only the amount uncovered; and does not include tax credits used by two of Oklahoma's largest industries, gross production and bank privilige taxes, which OTC has yet to report.
Note: The requirement to report tax credits, did not exist, until after many of these tax credits where claimed and authorized. That resulted in an unexpected trap, not forseen when many of these tax credits were wrongly authorized. Now those who enacted this law to expose this very wrong, turn a blind eye, to what the law has exposed.
When exposed for failing to report, the missing $235 million, OTC tried to cover up $163 million of the missing tax credits on to Open Books, in an early, unannounced posting of 2008 tax credits; only to be caught the same day. Then have another $112 Million in unreported tax credits uncovered in less than two weeks.
OTC further ensnared itsself in its own trap. When trying to slip the unreported tax credits, OTC tried to hide the largest tax credits, Weyerhaeuser's, under the non controversial and seldom mentioned, "Investment/New Jobs" tax credits, 68 O.S. 2357.4. That was an obvious misfit, to any familiar with the tax credit programs. As of March 4, 2010, Weyerhaeuser's corporate Website reports: major capital investment spending in Oklahoma for the period 2004-08 was $160 million. $160 million could be eligible for no more than $3.2 million in "Investment/New Jobs" tax credits. $54 million in tax credits would require a $2.7 Billion investment.
OTC, having been unaware reporting requirements would surface after authorizing tax credits; now likely unaware Weyerhaeuser would later report investments, on its corporate website; faced the dilemma of a large business, having used $54 million in tax credits, that was only eligible for a 2% tax credit program.
In a no win situation; reporting requirements, a hard to hide $54 million, and having been exposed for failing to report; OTC, had to make a choice. It would be more likely that Weyerhaeuser could not be passed off as a small business, than someone familiar enough with an off the radar program to catch the investment size, misfit.
That still leaves the question of how did Weyerhaeuser get $54 million in tax credits? State officials covering for OTC denying access to information, leaves that question hard to answer. On the other hand, there have only been two tax credits claims, large enough to qualified for $54 million in tax credits. Altus Ventures filed both claims using counterfeit loans to falsely documented investing $221 million and $200 million in Quartz Mountain Aerospace, in 2005 and 2006. OTC allowed Altus Ventures $66 million and $60 million, respectively, in tax credits.
Finding who used those tax credits has been elusive; courtesy of secrecy, to how public funds are used; and OTC's false reporting. An examination of SEC filings revealed Chaparral Energy's received and used $30 million of the Altus Ventures tax credits, for investing $15 million in Altus Ventures. That leaves $97 million in unaccountable, tax credits.
In spite of state officials imposed secrecy, we have the evidence to show:
Although the fake loans were not known at the time, the false investment claims could be seen as * "clearly as a red wagon in a field of snow" at the time OTC authorized.
* "No One Would Listen" Harry Markopolos, describing how obviously clear it was to see the Madoff scam the SEC and all others ignored for 10 years and missed, and involved 3 audits.