Like the 1,000s of other pages of evidence uncovered and descriptions of crimes on this site, this web page is only one part of a massive multi-state entanglement of government corruption and cover-up. See size
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:
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.
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?