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Oklahoma officials are using a very clever off the books accounting -- involving tax credits to hide a skim now, pay later scheme -- channeling
$100s of millions -- to private accounts of a chosen few. All done without leaving a paper trail and void of accountability.
Media afraid to challenge?
News reports of tax credit abuse have appeared on multiple occasions, only to be dismissed by state official as
"nothing illegal is occurring." An explanation, riddled with holes and ignoring unanswered questions, yet backing down the media
and lawmakers unable to comprehend the scheme and showing no appetite for challenging that which they do not understand.
Note: See
Attorneys and self fulfilling legal opinions.
The fraud involves tax credit abuse operating through the Capital Formation Incentive Act. Contrary to what the press and public was led to
believe, this problem was not fixed with the 2006 passing of SB 1577. An element of this law requires denying the public access to
information about this program, including the cost, where the money is going, who is receiving the money, what the state receives in return.
The good news!
Fortunately, the wrong can be exposed without access to the hidden information. The wrong is in the law!
Exposing the law, exposes the wrong in the law!
We only need expose the law, which clearly shows the public is purposesly left unprotected while public money is funneled off the books, sent to hidden private entities, with no requirements
for accountability or measurable results in return, leaving the public interest totally exposed and unprotected. A clear violation
of the constitution.
A very complex and convoluted law designed to confuse those who lack the background and experience, including attorneys and CPAs without the proper experience, to understand how certain elements included in the law, and other elements missing from the law are used to facilitate the fraud.
We will provide a case study scenario to demonstrate how, using the designed negligence and irresponsible elements of this law, $100's millions per year
can be taken continually, until stopped. How the law was created to allow a select group operating under the umbrella of a (suspiciously)
qualified Venture Capital Company (VCC) to continually enrich themselves at public expense. How there are no safeguards to protect the public
from the scheme, yet safeguards to protect the scheme and those enriching themselves.
We will direct you to an actual case involving Altus Ventures and Quartz Mountain Aerospace to show how the law was used to drain $66.3 million
in tax credits for a $32 million venture. A venture that has yet to prove more than a small showing of what was claimed.
Instant profits of 100% before investing one penny.
This scheme rewards so called investors an immediate 100% profit on --- what was claimed --- was intended to be invested. This is done allowing the
VCC instant automatic access to tax credits the VCC in turn sells converting to cash.
Time line significance.
A key feature seldom realized as important by outsiders is the scheme is structured to allow this entire process to transpire within a
few business days. Quickly providing the money to fund the entire cost of the investment and pay the so called investors their 100% profit,
before the investors need put up their first dime.
Another signifiance with a quick turn around assures the investors leaving financial records showing they
they obtained the funds to invest in the beginning. One of many seemingly minor points to tidy up in a clever coverup.
There is the second part of the scheme to drain the money supposedly invested.
Void of accountability and the requirements to show anything in return opens an unguarded opportunity channel most of the investment into unknown
accounts using false and overpriced consulting and services billing.
We will demonstrate where this fraud is more lucrative for the VCC's skimming money and leaving the venture to sink or swim on its own, than using
the all the money to as claimed. A real venture would require expensive and time consuming due diligence, management oversight, high risks, years,
if ever, to reach profitability.
Everything is circumstantial and/or situational.
Never get locked in on only one method for anything. The above illustrates the generalities of one way the fraud can be implemented. Like any opportunity to gain large amounts of money
we should expect to find other variations to fit the circumstances and accommodate those involved. Understanding no scheme can be 100%
safe, this writer fully expects to see other creative variations intended to squeeze more money out, add levels of cover-up and money trail diversions.
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