Three more false tax credit claims, with one filing bankruptcy shortly after its tax credits were used?
State officials and cronies pocketing $100s millions in tax revenue with impunity.
Oak Hills CAPCO and Oak Hills Capital Company are two more of the Oak Hills' family of LLC's recently reported to have received $22.6 million in tax credits by claiming it invested in seven LLCs, all sharing the same, mini storage unit address. After 3 years no evidence can be found to show any of the seven every materialized.
This brings to at least 10 false Oak Hills' claims, where each claim includes multiple misrepresentations of qualifying criteria. Two of the new claims went to more members of the Oak Hills' family. One claim that filed bankruptcy was an investment outside the family.
Oak Hills CAPCO received $6.2 million in tax credits by claiming to have invested $20.2 million in Ultimate Equipment Co in 2007 and 2008. Examining Ultimate Equipment's bankruptcy filings and Oak Hills SEC filings reveals Oak Hills' misrepresented as a minimum the following in the Ultimate Equipment claims.
A. Amount invested
B. Type of business
C. Location to receive 30% rather than 20%
D. Percentage of interest acquired. Only acquiring 1% interest while claiming to have acquired 51% or more interest.
E. Now we have a failed business that failed to last the required time.
Research uncovered claims for two more 2008 investments, Native Warehousing, LLC ($4,774,000); and Native Warehousing, LLC Series 2008 ($7,185,037), also mis-represented at least A, B, and C above. The jury is still out on D and E. Plus a 6th element where one fund invested in another fund, disqualifies those funds. There is only one Native Warehousing, LLC registered in Oklahoma. Native Warehousing, LLC Series 2008 identifies an investment. Money squirreled away in another investment fund does not qualify for tax credits. To qualify all the funds have to the business for use.
The Oklahoma Tax Commission tax credit report contains major discrepancies between amounts reported to have been invested by Oak Hills in 4 businesses during 2008. Adding the numbers gives $19,513,071 in one place and $29,067,071 in another. A $10 million mistake that would reap an additional $3 million in tax credits.
It gets even more ridiculous. The Oak Hills 2007 SEC Form D filing shows Oak Hills reported receiving $2,350,000 million from investors; then invested $42,325,000 in one unidentified investment; and $43,075,000 in another unidentified investment. In addition, Oak Hills paid out over $15 million in salaries ($2,250,000), commissions ($5,000,000) and other expenses, including indemnification expenses ($7,200,000). Indemnification is one of those financial terms used to disguise how the money was used. How does one turn $2.35 million in more than $100 million?