Altus Venture $126 million View
Scissortail $90 million View
Foxborough $600 million View
|
Venture capital (also known as VC or Venture) is a type of private equity capital typically provided to early-stage, high-potential, growth companies where the rewards are years out and carry a high risk. Venture capital is a special kind of funding to create a foundation for building the businesses that will replace today's diminishing industry and jobs. Oklahoma's venture tax credit program was intended to incentivize that venture capital funding needed by rewarding investors tax credits worth 20 to 30% of their at risk investment. |
The amounts listed are based on the target amounts claimed in the fund plans. Typically the funds will word the plans in a way the amounts can be anything depending on the opportunities over available over the next 3 to 10 years. Essentially the funds receive an opened end "determination letter" the equivalent of a blank checks, good for up to 10 years.
$126.3 million and potentially - Altus Venture
-
|
Update April 2009 2006 $60 million, for a total of $126 million through 2006 Recently uncovered documents reveal the Oklahoma Tax Commission allowed Oklahoma Industrial Venture Capital Company LLC one of the Altus Venture Capital Fund LLC's to take another $60 million in unearned tax credits by filing a second false claim that $200 million was invested in Quartz Mountain Aerospace in 2006. The same $32 million 2005 investment the Altus Gang had inflated to $221 million and received $66 million in tax credits during 2005. The Oklahoma Tax Commission then allowed this second (if not more) claim to go unchallenged then concealed the claims to prevent discovery. 2005 $66.3 million $66.3 million in tax revenue taken by Altus Venture Capital Fund Altus Venture, used loans held in a safe unreachable account to inflate a $32 million investment to appear as $221 million and received $66.3 million in state income tax credits. The president of Altus Venture is also the president of First State Bank Altus, where he was in a postion to swing: 1) a $60 million loan from his bank that had only $100 million in total assets; and 2) another $150 million loan from Merrill Lynch. With no visible assets for collateral both loans were secured by the loans. Self securing loans prevented the money from be released as an investment in the business venture QMA. 2004 ?? million Although not allowed access to public information (that does not include privacy information) concealed by the Oklahoma Tax Commission we have learned that Altus Venture was using tax credit during 2004. It is not unreasonable considering the history of the group to suspect they filed a 2004 claim. 1 |
$90 million - Scissortail
-
|
Update April 7, 2009 Previously undisclosed documents revealed the Oklahoma Tax Commission allowed Scissortail, to take $27 million in unearned tax credits by claiming to invest $90 million in capital at risk. OTC then concealed the claims to prevent discovery. Scissortail's plan to raise $5 million from "so called investors", by offering $2 in tax credits for each $1 invested. Scissortail would keep $3.40 for every $1 the "so called investors" actually invested at risk. Scissortail would then borrow $85 million more in capital using the assets of the business ventures (the capital was intended to help) as collateral to secure the loan. Scissortail then claimed the entire $90 million was risk capital invested by its investors. Obviously the assets of the business venture the investment was intended to help were at risk. Venture capital, by definition, is for companies that do not have the assets to obtain loans. The purpose of the tax credits were to incentivize the investors to assume the risk. 6 |
Oak Hills
-
|
2007 and 2008 coming soon! 2006 Another claim $75 million was invested in 7 LLC's sharing one Mini-Storage Unit? Now all seven LLCs appeared to have vanished, or more likely never materialized? SEC filings reveal Oklahoma Venture Capital Fund LLC reported investing a total of $9,733,750, while a CAPCO (Oak Hills Capital Company) received $22,604,400 in tax credits by filing a claim with the Oklahoma Tax Commission stating the same Oklahoma Venture Capital Fund LLC invested $75,348,000 in 7 LLC's. Now after 3 years and a considerable effort to learn what happened with the 7 LLCs, no trace of any one of the 7 has turned up. There was obviously a $75 million false claim. Now the question of whether even the $9,733,750 was actually invested in legitimate ventures, remains suspect and unanswered. |
$600 million - Foxborough Funding Company and Capital West Securities
-
| In a private Capital West Securities letter seeking investors for a $300 million Foxborough Funding Company venture investors were offered $2 in tax credits for every $1 invested. A $300 million fund could claim $600 million in tax credits. Yet obscure language by law requires that only 50% or $150 million has to be invested, leaving $450 million to divide as booty among unknowns! 3 |
Metafund and MetaMarkets OK, LLC
-
|
Evidence suggests a hidden Metafund affiliate, MetaMarkets OK, LLC, a tax credit pass-through entity is using non-qualified funds to claim business investment tax credits chiefly for the purpose of reducing tax liability or selling the tax credits for a profit. LLC's setup by unidentified individuals or businesses pass funds through MetaMarkets OK, which plays a shell game and represents the funds as qualifying for venture capital funding and claim investment tax credits. The funds are then passed on to another LLC's setup by unidentified individuals or businesses. Presumably back to whence the funds came increased by a share of the tax credits split with MetaMarkets OK. In essences nothing more than a tax credit enriching money laundering scheme. |
REI New Markets Investment and Lindmark Outdoor Advertising
-
|
Did REI New Markets Investment, in Durant, use a claimed $45.4 million investment it received from Purcell Outdoor Investment, to launder* through a program that allows taking 200% of the claimed investment in tax credits? Taking as much as $90.8 million in tax credits they could sell converting to cash. $45.4 million going to Lindmark Outdoor Advertising, Purcell, in exchange for some interest in the company. The other $45.4 million investment and shares of the company split among REI investors. Investors, whose identities are kept secret. Thus allowing state officials to participate, reaping millions in earned profits at the public's expense, without the public ever learning. Note: this is only one of several projects taking potentially up to $470 million in tax credits during 2007. 8 |
$330 million - Unidentified groups
-
|
We have obtained twenty-three Oklahoma Tax Commission "determination letters" represented as $330 million in investments issued in September/October 2006 the end of the 2006 amendment Grandfather period. The Grandfather period was to allow funds that had previously received "determination letters" before March 15, 2006, to finish investing those funds in business ventures (often referred to as Portfolio Companies, Target Entities and similar terms). There evidence to suggest every other conditions was totally ignored, including the date. The only part of the Grandfather clause that appeared to be followed was the extra time given to file more claims. Some letters dated during the last week were still seeking investors and would have been virtually impossible to complete the necessary steps outlined to have the money invested in the target business. The corrspondence discussed issues that would have already been resolved and settled before receiving the pre March 15 2006 determination. Strongly suggesting new plans were being slipped in. Many of these used the Grandfather period to change its plan, in effect to obtain a "determination letters" for a different and much larger plan that would cover up to the next 10 years. The figure $330 million means little as non-binding languages is found through out the correspondences. For example, we have evidence the Scissortail fund "determination letter" issued prior to March 15, 2006, had the figure of $15 million for one fund. An October 2006 letter soliciting investor pointed out the plan had been increased from $15 million to $60 million. Eleven of the plans were based on raising $5-15 million from investors and obtaining a loan for $85-90 million and claim tax credits on the total, i.e., approximately $100 million. That is not venture capital but an ordinary business loan. The plans clearly stated the assets of the Portfolio Companies would be used to secure the 85 to 90% loans. Apparently disregarding the Grandfather clause requirement that tax credits only be taken on money at risk. 2 |
$17.9 million - Rocketplane
-
|
"We gave $17.9 million in tax credits to that space group in Burns Flat and they turned around and sold them for $15 million and there's no space ship or no plans to have one," State Rep. David Dank, R-Oklahoma City $17.9 million of Oklahoma taxpayers money with nothing to show but a rusty old airplane cockpit that could be picked up at any salvage yard for little more than the cost of hauling away. During that period Rocketplane employed very few Oklahoman's while bringing in Kansas employee on a temporary basis. Also during that period Rocketplane was known to be devoting a major amount of effort working on a prototype for a NASA contract they hoped to land. Rocketplane didn't get the NASA contract and Oklahoma got nothing. Very little else could be found on the Rocketplane program, in regards to the Tax Credit Abuse issue. |
$27 million - Great Plains Airlines
-
|
Received $27 million in tax credits. Which they turned around and sold for nearly $23 million in cash. And, filed Chapter 11 bankruptcy protection in January 2004. Great Plains is a very controversial and well documented case of fraud, with high visibility in the Tulsa area. Owl's notes: |
Two other cases kept hidden and details are skimpy.