<< Back     Next >>        for index -

Index Section Topics 1 Cover letter 2 Overview 3 Fraudulent activities 4 How this occurred 5 Critical evidence tax commission emails 6 Evidence - examination and results 7 Ongoing tax credit investigation and achievements 8 Summary

June 7, 2010

SEC letter - How BOK and Cimarron Business Capital obtained unearned tax credits (cont)

Evidence - examination, and results

As a part of the ongoing investigation into tax credit abuses (see "Ongoing tax credit investigation and achievements" below), interest includes determining if the investments' met eligibility requirements, as claimed. A private citizen dealing with excessive secrecy can only go so far. In this case, the information available is far more than adequate to justify and demands an investigation.

Tax credit eligibility: Oklahoma's "Venture Capital" tax credit program returns 20% of qualified investments to incentivized risks inherent in investing as opposes to secured loans.

Note Various forms of "debt and equity funds" such as "unsecured loans" may qualify with proper "evidence of ownership" in the business.

BOK's list of investments includes:

• non-profits
• private individuals
• foundations
• Roman Catholic Diocese
• Indian Tribal Nations
• YMCAs
• Oklahoma State Fair

The results:

• Types of entities claimed to have money invested.
• BOK's failure to disclose an ownership interest.
• On tax credit filings, BOK claimed to invest a total of $456 million.
• SEC filings show venture Capital investments totaling $125 million.
• 2009⁽¹⁾ claimed tax credits for investing $16.4 million in the Tulsa Community Foundation. ⁽³⁾

1. BOK's 2008 SEC filings "disclosing loans to related parties" BOK reported a $25 million loan commitment with the Tulsa Community Foundation ("TCF") to be secured by tax-exempt bonds purchased from an Oklahoma public trust, of which the City of Tulsa is the sole beneficiary.

In addition, to entities in industries prohibited from qualifying for tax credits, e.g., real estate.

The examination suggests the following likely occurred:

• Investors misrepresented nonqualifying investments as qualified investments.
• Tax credit filings reveal BOK claimed to invest a total of $456 million (2006-2009).
• SEC filings for the same year show venture Capital investments totaling $125 million.
• Failed to fully disclose ownership interest and associated risk exposure, as required if these were investments as represented.
• 2009 claimed tax credits for investing $16.4 million(1) in the Tulsa Community Foundation.

2. Tulsa Community Foundation. 2008 and 2009 SEC filings disclosing "related parties" activities, BOK reported a $25 million loan commitment with the Tulsa Community Foundation ("TCF") to be secured by tax-exempt bonds purchased from an Oklahoma public trust, of which the City of Tulsa is the sole beneficiary. Then claimed to invest $16.4 million in the Tulsa Community Foundation, a nonprofit, to received tax credits.

Evidence tax commission emails << Back     Next >> Efforts and achievements