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
CAPCO (Certified Capital Companies) was a business investment scheme pitched, as the magic solution for state economic development programs. Pitched in way that officials were duped into thinking it was the traditional private sector venture Capital fund (VCF). The CAPCO would manage the venture Capital fund and the insurance company be the investors. The state would do nothing except issue a few tax credits. Then jobs would increase aplenty. The state only need provide the insurance companies some token tax credits as an incentive. As it turns out:
** No officials numbers could be located, but articles describe similar results for Colorado, Hawaii, Iowa, Louisiana, New York and Washington DC.
How about Oklahoma?
Although Oklahoma refuse to release any information about this program, we have found information that shows 100's million has been diverted to CAPCOs, and no more than 200 jobs have been created, and those only lasted a short time before the businesses failed. State officials can show no records of new jobs created.
AP reported one Oklahoma project where the CAPCO reported raising $221 million. Less than than 15% or only $32 million went to the business. CAPCO kept at least $34.3 million for profits or more than the business received. $189 million remains unaccounted for.
As soon as the above results started appearing other states soon realized, and independent experts verified teh CAPCO plan was nothing more than a very clever and lucrative profit mechanism designed to reward those behind CAPCO. Now known as a "Scam! But not until several states had poured $100s million into CAPCO's pockets with nothing to show.
All other states quickly dropped shed themselves of CAPCO, but not Oklahoma. Oklahoma is the only state where officials are still defending the program while refusing to release any information that would allow the public to know what is really happening!
Additional CAPCOs articles and references -
This article describes the basic CAPCO structure, created by the CAPCO members. Oklahoma did not use an outside CAPCO, rather some Oklahoma venture Capital cronies adapted the CAPCO model with signficantly changes that makes the scam even more lucrative and less risky than the basic CAPCO scam so many are calling a scam. One example, is where this article describes in basic CAPCO structure the state provides one dollar of tax credit for every one dollar of CAPCO Capital. Oklahoma allows two dollars for every one dollar of invested Capital.
What that means is the basic CAPCO ensures the venture Capitalist gets all of their money back. Oklahoma takes that further and gives twice the money back. Plus they get to keep the business and all profits made from the business.
Ref: Understanding CAPCOs - National Association of Seed and Venture Funds. See study