Like the 3,200 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
Evidence was uncovered in parts over years, and not in the same order as the crimes occurred or the evidence was created. Statements were made based on what was known at the time.
Dates are approximate because government filings and reports vary in some cases up to months if not This is part of cover up. One example is Oklahoma's Openbooks, which started out late with only a fraction of what was required to be added each year. Plus, the data was littered with data entry and spelling errors, meaning you have to go through one entry at a time. This amount to more than 17,000 entries in 2017.
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. |
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