State loses made public

This program was created with the intent of eliminating oversight, accountability and preventing the public from seeing how the program is used. With only a very small group of possibly no more than one person in the Oklahoma Tax Commission ever knowing what goes on inside the program. As a result there has been constant abuse from the start of the program in the 1990's.

There is no limit to how much can be stolen or how many people would want in on a guaranteed $2 for $1 deal. From a practical sense those allowed access will want to keep the abuse below the radar screen. By maintaining tight control, many may be allowed to use the tax credits, but a smaller select few can enjoy the huge profits and ownership in the financial empire funded by taxpayers for years to come.

An example flagrant abuse benefiting a smaller select few. -

The most flagrant and revealing case of abuse to emerge is Mr. Paul Doughty, the president of Altus Ventures flaunting to potential investors how he could manipulate Oklahoma's rural and small business venture tax incentives program to guarantee a two for one return on money they invested in his ventures. Regardless of the business ventures success.

To guarantee this promise Altus Ventures added a $189 million artificial loan to the $32 million Quartz Mountain Aerospace venture inflating the reported investment to $221 million. Receiving $66.3 million in tax credits. After deducting an overhead fee of $2.3 million left $64 million to payout the investors $32 million. All while maintaining 100% ownerhsip in the venture.

QMA was suppose to employee 300 employees with an average salary of $30,000, which would have cost the state $221,000 per employee. QMA, a poorly thought out investment had soon expended all funds while failing to meet it first goal, and commenced laying off the mere 100 employees who only worked a few years. Total cost to the state and city roughly $700,000 for each short term job for a failed program costing $75 million plus.

This does not include an additional $10 million or so in funding provided by the city of Altus and other state programs such as Quality Jobs.

The venture failure demonstrates one of the many weakness in the program that disqualifies competent venture capital companies in favor of political cronies short ton competency to run a venture capital business, yet long on willingnes to abuse a public program for personal gain.

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