Why? Why? Why?
The issue is why would a program like these be allowed to even exist?
- Allowed to operate in secrecy;
- with no oversight; tracking;
- or accountability?
This is beyond irresponsible government!
According to Oklahoma officials there is "nothing illegal involved"
in a program that uses public funds to pay 200,000% profits on an investment,
all paid in tax credits. 200,000% profits for investments before the investment receives a dime, and regardless if the investment fails. And, every sizeable investment has failed and the investors kept the 200,000% profits. Tax credits are handed out the same day the investment is made, and can immediately be sold for cash. Or, more often, have a middleman, known as a Capco, in this scheme, sell the tax credits, and pay off in cash.
If this program was legitimate, then why did state lawmakers create the program to operate in secrecy? Why has Oklahoma Tax Commission's, Tony Mastin
resorted to falsifying reports, by underreporting two tax credits by 95% and failing to report two other tax credit programs, preventing the public from learning the cost?
we will show how Oklahoma's current tax revenue shortfall goes back to fraudulent events that transpired in late 2005 and 2006, and continued funneling tax revenue off at a mercurial rise. A scheme that allowed selling tax credits for cash in 2005 and later, has a stealthy insidious ramping effect that would allow steal now and not be noticed for several years, when the cause could be deflected to other excuses.
we will show, using one of many cases, how Altus Ventures and Chaparral Energy's fraudulent scheme left an evidential trail of unmistakable clarity revealing how Chaparral received $30 million in tax credits by merely investing $15 million. $2,000 for each $1 invested, and didn't impact tax revenue up until this fiscal year.
how the state's tax credit program was structured to allow "at arm's length" passive investors. This provided the "I knew nothing defense"
for state officials. Passive investors are not expected to not play an active role in a business, and may have no knowledge of specifics; claiming they had no knowledge that a business was receiving tax credits. For the record, Oklahoma law allows state officials to own an interest and profit from entities receiving public funds
, including tax credits. State officials claim there is "nothing illegal occurring" in this program. State officials also claimed there was "nothing illegal occurring," when Tony Mastin, Oklahoma Tax Commission, allowed Altus Ventures and Affinity Ventures $192 million in tax credits, for $643 million in fake counterfeit loans were investments. When fake loans, false claims and false reports, are not illegal, then pigs will fly.
View who received loans.
Who received tax credits for years 2006, 2007, 2008, 2009
View or download
Note: Receiving and using tax credits are not necessarily the same, and are addressed elsewhere on prowlingowl.com. For this discussion being aware is sufficient.
We will also show one way, but only one of the many ways, kickbacks can be funneled back to state officials. This will be done using evidence uncovered showing
Chaparral Energy received, $2,000 for each $1 invested. There is nothing magic about $2,000 for each $1. It could be $10 for $1 or $1 million for $1. In reality, any pretense of investing is merely a disguise for fraud.
Lastly, we will show how fake loans are used to obtain tax credits. Tony Mastin, head Oklahoma Tax Commission OTC, had/has sole and absolute authority to accept fake loans without question. Here are links to Mastin's false reporting to hide tax credit fraud.
Another missing $112 million in 2007-08 tax credits found, one week after uncovering $163 million missing!
Oklahoma's $billions in hidden tax expenditures!
By no means should this to be interpreted, as covering all aspects of this fraud. Quite the contrary, this is but one small part.
Disclosure: The basic story of fraud is based on evidence. Where exact information on how some scenarios played out was not available, best effort interpretations based on what was known and possibilities where used to fill in the gaps.