SEC letter - How BOK and Cimarron Business Capital obtained unearned tax credits (cont)
How this occurred - difficult to imagine, but documented!
Oklahoma's "Venture Capital" tax credit program was originally created to operate, free of budgetary limitations, void of accountability, and all information to be held in strictest confidence. An Oklahoma public trust, Oklahoma Capital Investment Board, OCIB, was created to provide independent oversight for this tax credit program. To hide as far off the radar as possible, OCIB was funded using a form of off-balance sheet financing, to further escape oversight and scrutiny.
In 2000, OCIB out sourced oversight to a private individual Robert G. Heard; giving Heard sole discretionary authority to authorize, which funds and investments qualified for tax credits; Heard, operating in strictest confidence, and void of scrutiny; qualified two funds:
4.1.1 BOK subsidiary Cottonwood Valley Ventures, a BOK subsidiary; addressed in more detail below. See "Evidence - examination and results."
4.1.2 Heard's own fund, Cimarron Business Capital; where Heard received $3.4 million or 99% of the tax credits he authorized for his own personal investments, for 2006-2008. Heard's 2009 claim has not been obtained.
An examination of Cimarron Business Capital', a private entity, purported investments are pending awaiting additional information.