New tax credit abuse scheme surfaces, while lawmakers keep moratorium gate open 3 months.
  Main Site Home Site Maps Those involved Blog & Articles Scams & Frauds General Search this site  


     Home

     Blogs

     Recent Updates

     Known abuses

        Claimed investments

        Tax credits used

     The financial shell games

     Extent of false reporting

     About this fraud flawed law

     Guide to flaws in the law

     Colorado land scam


[?] Subscribe To This Site

XML RSS
Add to Google
Add to My Yahoo!
Add to My MSN
Subscribe with Bloglines

 


State Representative Jason Murphey provided a letter he received from a constituent. The letter is offering $2 in tax credit for each $1 invested, and provides additonal verification the investments aren't expected to succeed. Only serve to obtain tax credit.

This is reminiscent of the same ruse lawmakers pulled in 2006, when a window of opportunity was left to allow a rush of preapprovals, that were treated as investments. The results, tax credits more than doubled, in 2006. More below

Below provides background that may help in understanding key points found in the letter.

The first two comments clearly show the primary interest is tax credits.

"If you choose to invest, the plan is that you will be allocated $2 of Oklahoma tax credits for every $1 invested."

"There is not really any market for this type of investment. So, you should not expect much at this point in the way of a cash return. But selling out would trigger a tax loss of any remaining tax basis in your investment."

Ed. The business is not expected to succeed, and be of any value. That is what we see over and over. Investments lasting little more than a year, one 6 months, and no evidence of jobs or growth. This is the case in all these schemes where the investments are merely tools to obtain tax credits, are setup for failure.

The following illustrates the tax commissions role in missing its authority in an effort to give the appearance of legitimacy to tax credit fraud.

"This venture has obtained a letter ruling from the Oklahoma Tax Commission blessing the structure, meaning that IF the venture accomplishes what it intends to do, the Oklahoma tax credits will be there for the investors."

The following verifies the use of loans to inflate and misrepresent the investment.

"You are only obligated for the amount that you subscribe...." Meaning amount invested.

"You do not guarantee any notes or have to put in more money in the future."

These last two comments regarding "amount subscribed" and "investment and obligations" are keys to the scheme. Subscriptions are one-tenth or one-seventh, of the amount represented as having been invested. One-tenth for 20% Small Business and one-seventh for 20% Small Business.

The rest is borrowed, which is where the shell gaming comes in. Investors are allowed to claim tax credits for money they borrow to invest, if they remain obligated. These comments verify what is clearly seen in the tax commission ruling letter request; the investors are not be obligated for the loan. The shell games are to disguise the fact the business investment supposedly receiving the investment is in fact obligated for the loan. There is no other way to make a 200% profit, immediately. There is the red flag proclaiming wrong loud and clear.

The damage comes in two parts. Receiving 200% unearned profits for returning nothing of value, is one part. The other is the business investments, stuck with the loan, receives even less than the one-seventh to one-tenth, after fees. Steal from the public, steal from jobs and growth. The letter confirms there is no intent to see the investment through to success; take the free 200% profit and let it fail. They fail, and fail, and fail. Since our tax commission keeps no records, requires no reporting, no one will ever know. The bliss of ignorance!

"The primary risk taken is will the credits be available and, if so, will they be recaptured in the future. Don Dillingham represents that in the past 6 years of doing this, he has not had any problems qualifying his ventures for the credits or with recapture."

This cannot be denied, as the role of the tax commission is to insure some have an open door into the state's stream of incoming tax revenue, allowing them to siphon off $100s million before the tax commission counts and reports the money as revenue, avoiding any money trails. Read all about Don Dillingham's, previous deals involving another of his companies Oak Hills.

   Seven paper LLCs, all sharing one mini-storage address, yet no evidence could be found these ever materialized.

   Ultimate equipment failed after 6 months

Original offer letter

What happened in 2006 with that window of opportunity.

The majority of those tax credits went for bogus scheme that received tax credits for investments never made. Some 2006 investment claims included:

  • Altus Venture/QMA $200 million.
  • Affinity Ventures/QMA $21 million.
  • Scissortail/Ardmore MG plant and others $89 million.
  • Oak Hills 7 on paper LLCs all sharing one mini-storage address $75 million.
  • McClendon Ventures $93 million that just went poof?

That is the way state lawmakers stop tax credits! Now as in 2006, the justification is to allow programs in the pipeline to continue. Why would we want to allow bad programs to continue and open the flood gates for even more? Our price for taking claims at face value!

Evidence mounting like a harvest hopper filling a wheat hauling truck; yet totally ignored while clinging to any shred of denial, like the word moratorium, that no one notices is riddle with holes. No one notices the wheat hauling trucks are turning the wrong direction when leaving the fields full of wheat. No one has been keeping track to even count the trucks, calculate the price, and realize the deficit for years.

Our state lawmakers, governor and tax commission are prostituting their offices to those benefiting, who return enough scraps to campaign coffers to keep cooperating and back turing officials in office. Key players get in on the investments, reaping their own 200% in unearned profits.

Sound like a wild accusation? Why not, it is legal under state law! But, not something those benefiting would want the public to know. There is no other reasonable justification for the aggressive efforts to withhold information from the public.

It is the secrecy, stupid! That unconstitutional, secrecy! We can't even admit that is wrong!



Copyright 2007 - 2012 Prowling Owl
The Prowling Owl is dedicated to exposing public corruption, fraud, scams, embezzlement, and such. Any questioning the validity or accuracy of information on this Website should be provided with clear and consise specificity regarding information in question and evidence. The Prowling Owl will take appropriate action. Correcting any information demonstrate to be inaccurate or invalid.
Email: ProwlMaster@prowlingowl.com