Another claim $75 million claimed investment in 7 LLC's sharing one Mini-Storage Unit?
September 29, 2009

Now all 7 LLCs appeared to have vanished, or more likely never materialized?

Securities and Exchange Commission filings reveal Oklahoma Venture Capital Fund LLC (OVCF) reported investing a total of $9,733,750 as of November 13, 2006.   View SEC Filing

Oak Hills Capital Company (or OHCC, the CAPCO) claimed OVCF invested $75,348,000* in 7 LLC's before November 1, 2006, the grandfather clause "post cutoff" date.

* $75,348,000 consist of $54,362,910 through Oak Hills Capital Company, the CAPCO; and $20,985,090 invested "in-conjunction."   View 2006 Rural Small Business claims

The 7 LLCs were:

  LLC   Address
  All-State Equipment   Shared mini storage unit, Yukon OK
  Carter County Car Company   Shared mini storage unit, Yukon OK
  Eagle Builders   Shared mini storage unit, Yukon OK
  New Century Medical Equipment   Shared mini storage unit, Yukon OK
  Oklahoma Agri-Builder   Shared mini storage unit, Yukon OK
  Sentry Storage.   Shared mini storage unit, Yukon OK

OHCC received $22,604,400 in tax credits for this claim, which failed multiple qualifying requirements.

Now, after three years and a considerable effort to learn what happened with the 7 LLCs, no trace of any one of the seven has turned up. Like other claims, there were numerous other reasons to have questioned the claim. The question of whether the $9,733,750 was actually invested in legitimate ventures, remains suspect and unanswered.

Additional questions about legitimate qualifications are raised by the following. All 7 LLC's were registered long after the March 16, 2006, grandfather "pre-cutoff" date. All 7 LLCs are listed at the same address, a mini-storage unit (not Sentry) in Yukon. A ploy to claim the more lucrative 30% rural tax credits. All 7 LLC's along with the investing entity OVCF and CAPCO, OHCC, can be traced back to Donald L. Dillingham. The money was funneled back to the origin after picking nearly $23 million in tax credits.

To further illustrate why the false claim was $75,348,000, remember this fraud is a scheme used to give "so-called investors" $2 in tax credits for each $1 they invest. Subtracting the out of pocket cost (excluding fees and commissions) from the $22,604,400 in tax credits leaves a tad over $22.2 million. Twice the $11.1 million invested. Also, remember this offers an instant $2 for 1$ payout, refuting state officials' claims this is a legitimate investment. Off the record, CAPCOs was reported as telling investors they are not concerned about picking good investments. The money is in the tax credits. This is proven out by the record of failures, and how quickly the failures occur.

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