How this all came unwound
Updated report to appropriate authorities - evidence of tax credit and bank frauds. Dated 07/10/2010 (cont)
6. Other noteworthy issues related to tax credit fraud include
1) Claims for 2006 and 2007, the only year's information is available, listed over 30 funds investing a total of $731 million in over 100 business ventures and receiving $209 million in tax credits.
2) Because of the secrecy imposed on the tax credit programs, this report has been limited to three of the largest claims with the most obviously blatant claims and complete evidence obtained. Failure to last the required eligibility period is one key element of evidence of failure to qualify. This is beyond the typical failures found in venture capital investments, and some failures occur within less than a year's, while others never existed. These three funds filed for 2006 investments. Partial evidence from more recent years suggests false claims include a variety of other schemes.
3) Only the head of the Oklahoma Tax Commission and only two others in the commission ever see the "Confidential Tax Letter Rulings." The two others often questioned the"Letter Rulings." Still, they aren't allowed to see the actual claims filed after the investments supposedly occur. These tax commission officials deny access to everyone, including other state agencies and officials. The name that keeps appearing as signing tax credit documents is Tony Mastin, the Tax Commission Administrator, the highest career level position.
4) Oklahoma law does not restricted or prevent state officials (including legislators) from benefiting from these tax credit programs. Officials are only required to report business interest to the state Ethics Commission under the premise this allows the public to judge any effect of an official's business relationships. However, in this case, the public is denied information that would allow determining if an official was benefiting from tax credits.
5) An Oklahoma law passed in 2007 requiring the tax commission to disclose, on the website Openbooks the identities and amounts of those receiving tax credits. To defeat this requirement, the tax commission substitutes the identities and amounts of those using tax credits, thus allowing those wanting to keep their involvement secret of selling their tax credits to others to avoid revealing their involvement.
In addition, the tax commission omitted to report certain other tax credits, those labeled as (Rural) Small Business Venture that are issued tax refund checks. Only reporting tax credits used that are labeled (Rural) Small Business Capital.
6) To illustrate how obvious the fact the program is used to obtain tax credits and not for economic development; is found In one email secretly floated among investors, WPG solicited investors by offering to sell tax credits at half price.
How this all came unwound