Like the 1,000s of other pages of evidence uncovered and descriptions of crimes on this site, this web page is only one part of a massive multi-state entanglement of government corruption and cover-up. See size
Part 1 of 2 -- see part 2
May 11, 2020
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 additional verification; the investments aren't expected to succeed. Only serve to obtain the 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 some background that may help in understanding the key points found in the letter.
The first two comments clearly show that 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 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 was not expected to succeed and be of any value. That is what we see over and over. Investments were lasting little more than a year, with one six 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 set up for failure.
The following illustrates the tax commission's 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 were not obligated for the loan. The shell games are to disguise the fact that the business investment supposedly receiving the investment is the party 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!
This cannot be denied, as the role of the tax commission is to ensure 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. Please read all about Don Dillingham's previous deals involving another of his companies Oak Hills.
Ultimate equipment failed after siix months
What happened in 2006 with that window of opportunity.
The majority of those tax credits went to bogus schemes that received tax credits for investments never made. Some 2006 investment claims included:
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!
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 turning 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.