Recently uncovered information, held in secrecy, by state officials, points to, a ("Tax Exempt") state funded agency, using public money to provide the major funds for a scheme where the tax credits all go to small Non-Tax Exempt investors. This is not one of our bigger frauds, but does reveal how systemically pervasive this has became.

Once again, Oklahoma law allows state officials to be those investors! Held in secrecy!

In addition, to convincing evidence a state agency is misusing public funds to enrich others, evidence further suggests this is a case of one Capco (or pass-through entity), investing in a second Capco (or pass-through entity) to collect tax credits twice. This is not the only one.

Oklahoma Tax Commission IRS Capco reports - download .xlsx list Oklahoma Capital Formation Corp as investing in Capco funds, receiving tax credits for the investments. Oklahoma Capital Formation Corp is a private arm set-up by the Oklahoma Capital Investment Board, a state agency, the state auditor issued a warning report in 2006, revealing this connection.

OTC letter LR-07-144, states under, I. Summary of Transactions:

• Background Information: "Exempt Investors" and "ABCD" invest $6,500,000 and $1,750,000 in total respectively, and will receive no tax credits.
• The Fund: "Non-Exempt Investors invest $2,250,000 and receive all the tax credits.

The only Tax Exempt Investor found was Oklahoma Capital Formation Corp which invested a total of $1,745,000, in Mesa Oklahoma Growth Fund; and Oklahoma Life Science Fund II. There were 2 separate investments each for 2007 and 2008, and well within the investment time frame. Ref. IRS Capco reports - download .xlsx

That is only the most obvious of numerous failures to meet ineligibility; and inconsistencies and discrepancies.

Although the letter states "The Company has Capital commitments in place in the amount of $10,500,000." Only one $600,000 investment is revealed to obtain approval.

D. The Investment states: The Company will invest $600,000 in the Venture as part of a total investment by a syndicate of venture Capital funds of approximately $5,497,116. The Company believes (but cannot be certain) that its $600,000 investment is the only investment Capital resulting in tax Credits under the Small Business Act

There are at least two problems there.

• Since "The Company" is the Capco here, it is required to obtain 51% ownership, which is obviously not the case. "The Company" makes that statement in paragraph D.7, to cover itself, and OTC authorizes.

• Re: "(but cannot be certain)" is obviously another ploy to provide cover. The stacking pass-through entities (CAPCOs) was revealed on the Capco report which OTC, as typical, failed to catch.

An examination of the report reveals what appears to be stacking by at least two others, both also involving Mesa. Mesa reported receiving investments from and claiming tax credits for both McClendon Venture Company and TLW Venture Company; yet both filed as Capco's, claiming their own tax credits, but not reporting their investments in Mesa.

To be repetitive there is no foreseeable end to this list of fraudulent cases. Trying to keep up with more than 100 cases shrouded in secrecy, and totaling somewhere in the neighborhood of $500 million, and counting is a losing proposition.

Why haven't we heard about this? Maybe we have been relying others to keep us informed, like the media. The media long ago surrendered it's flag of the Journalistic Creed to serve the flag of Journalistic Greed.

The Oklahoma Publishing Co, the parent company of the Oklahoman, used $366,000 of these off the books tax credit during 2007. That isn't all. A Gaylord in-law Robert Bennett, Clay Bennett's brother, used nearly $1.2 million. That has more questionable circumstances. Click to view.

How long are you willing to keep your heads buried in the sand, while tax revenue shortfalls resulting from tax credit fraud is destroying us?

Just how much proof delivered on a silver platter do we need before we feel we can expect our rights for accountability? Who is serving whom?