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Did BOK Financial Corp - BOKF: engaged in illegal tax credit and evasion activities?

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Index
Section		Topics
A		Cover letter
B		Unearned gains, BOK and insiders.
B.1		BOK Financial Corp - Unreported Income and Tax Years
B.2		BOK Financial Corp Insiders
B.3		Robert G Heard - Cimarron Business Capital Company
1		How the fraud works
1.1		BOK's list of investments
1.2		BOK claimed venture Capital investments for ineligible for businesses
1.3		Additional evidence
2		Source of evidence 2006 – 2009
2.1		Oklahoma Tax Commission auditor's questioning claim ignored
2.2		Fraudulent financial transactions
2.3		Failure to report income to avoid paying federal taxes
3		Source of evidence (partial) 2001–2005, 2010. Potentially $369 million more
3.1		Partial evidence for 2001 thru 2005
3.2		Most complete evidence January 2010
4		Tax credit programs operated in secrecy, to prevent discovery
4.1		First, a quasi-state agency
4.2		Second, OCIB was assigned sole authority
4.3		Third, Heard the president outsources OCIB to self
4.4		Heard authorizes himself $3.4 million and BOK $91 million in tax credits
5		Involved parties
5.1		Caution over confusion
6		References

July 2, 2010

To: Appropriate federal and state authorities

Evidence suggests BOK Financial BOKF: engaged in illegal tax credit and evasion activities.

An examination of evidence obtained BOK state tax credit claims^(C); and SEC^(D), FDIC^(E), Federal Reserve Board^(F) filings; reveal what I believe is the following:

1. Bank and state tax credit fraud. BOK insiders misrepresented $455 million^(C) in bank loans as venture Capital investments in the companies taking out the loans; in order to obtain $91 million^(C), in unearned state income tax credit.

2. Federal tax evasion. To avoid exposing the fraud and the bank paying federal taxes on the full $91 million, the insiders paid the bank $19 million^(D) for the tax credits. The BOK only reported the $19 million^(D) as revenue. They were easily hidden with tax credit records held in secrecy.

3. Insider gain. Insiders misused the bank to obtain $72 million in unearned tax credits for personal gain.

4. Hidden. The fact tax credits aren't normal banking revenue; no specific details were reported on any federal reporting forms regarding tax credits, and tax credit information is held in strictest confidence; there would be no reason for even examiners to suspect or question any of this.

5. Potentially much more. These discussions are limited to the years 2006 thru 2009, where the most complete information is available. Partial information available for other years clearly demonstrates this could exceed $400 million and warrants further investigation.

6. Related issues. This is another in a series of Oklahoma state income tax credit fraud cases uncovered during more than three years of investigating. This fraud involves "Venture Capital"(G) tax credits. Other reported frauds involve Capital Formation Incentive Act(H) tax credit programs and covered in a separate report. Included in the evidence is $643 million in fraudulent loan documents found after the FDIC seized First State Bank Altus OK. These fraudulent loan documents were used in a manner similar to BOK's claims to obtain unearned state income tax credits. In spite of such clearly abundant and convincing evidence, authorities have chosen to ignore the repeated request to examine the program, abundance of evidence, and discrepancies found in public documents, all easily accessible and available online.

Respectfully,

Prowling Owl
email: nite@prowlingowl.com

References

(D) U.S. Securities and Exchange Commission filings

(D1) U.S. Securities and Exchange Commission filings

(E) FDIC

(F) Federal Reserve Board filings; for 2006 thru 2009

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