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Update: We recently received documentation showing how much Scissortail claimed in 2006. Click here

No one is allowed to see what actually happened, but here we will describe what the Fund reported as its intentions, and what OTC authorized.

Important point: With the Oklahoma program the term investors is misleading. Because the money that goes to qualify for tax credits is going to the Fund. Essentailly the "so called investors" merely temporarily loan the Fund manager the amount claimed to be invested. The Fund operates the shell game to get the tax credits. The fund manager then repays the investors $2 or more for every $1 they invested investors. The investors can receive repayment in the either tax credits or have the fund manager sell the tax credits and give them cash. At this point the "so called investors" are out of the money equation. The fund manager has all the money and owns the interest in the company.

Generally referred to as a $2 for each $1 invested for ease of understanding. In practice the "so called investors" put up nothing, only listed on paper as having invested $50 million. A financial shell game is then used to obtain $100 million in tax credits.

From the $100 million the fund manager keeps a minimum of $13.7 million in preprofits. They do this by selling the Venture Fund hey do is Sell one LLC

$25 million fund
  Private Sector Oklahoma
  Investors Fund manager Investors Fund manager
Money at risk $19.75 million $250,000 None None
Management fees None ??? % None $6.7 million initially, plus ??% and ??%
When tax credits are received
???? None None $38.5 million All that is left possibly ????
Investors have been repaid and are no longer in the picture.
Once business turns profitable
Pay back When business becomes profitable, all profits go to repay investors their original invesment.
After investors recover their initial investment the profits are split 80% to investors and
20% to manager
100% goes to fund manager.
Profits once investors are repaid 80% 20% None 100%%

Investors puts at risk $19.75 million. Once business is profitable, usually 5-10 years, profits go to pay back investors $19.75 million None See Note 1
Fund manager puts at risk $250,000 ??
Investors Pay back Once profitable  
     
Notes

1. Sign for $10 million long enough to receive $20 million in tax credits. $10 million covers investment then receive $10 million profit.