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
July 2, 2010
Evidence suggests BOK Financial BOKF: engaged in illegal tax credit and evasion activities. (cont)
1. How and what allows this scheme to operate
Note: A key element is "How hidden tax credit programs prevent discovery."
This fraud involved BOK misrepresenting standard interest-bearing, secured bank loans as "Venture Capital(G)" investments to obtain $91 million unearned for tax credits. The $91 million in tax credits were then sold to insiders for $19 million. BOK only recorded the $19 million as revenue to avoid paying federal taxes on $72 million in revenue.
In summary, insiders misused bank financial transactions to reap $72 million in unearned gain, while the bank continued to earn interest without exceeding standard acceptable bank loan risk.
The fact these were loans and not investments are evidenced in multiple ways:
1.1 BOK's list of investments(C)
Includes entities that obviously do not qualify as venture Capital investments(G) do not sell ownership interest and could only be considered for loans. Examples:
1.2 BOK claimed venture Capital investments for ineligible for businesses(C)
BOK claimed venture Capital investments for businesses in industries(G) prohibited from qualifying for tax credits, e.g., real estate.
1.3 Additional evidence. Examinations also revealed for 2006-2009.
While obtaining an ownership interest in investments is a requirement for tax credits; BOK did not disclose an ownership interest in the entities as is required on SEC filings(D)(D1) as required to reveal to shareholders and investors the true financial condition and risks, associated with ownership interest. Suggesting BOK treated these as ordinary bank interest-bearing, secured loans.
The sole benefactors were BOK and insiders that gained $91 million in unearned public funds without returning any value to the public. As most know, the definition of government fraud is presenting a false claim to be paid by the government for an invalid reason; and evidenced by failing to return value equal to public funds received.
References
(C) BOK or Cottonwood Valley Venture state tax credit investment claims
(D) U.S. Securities and Exchange Commission filings
(D1) U.S. Securities and Exchange Commission filings
(G) The fact that fraud is occurring under different but similar programs has attributed to considerable confusion. This particular case involves the following, commonly referred to as "Venture Capital" tax credits: Oklahoma Statute 68 § 2357.7 - Credit Against Tax for Investments in Qualified Venture Capital Companies - Pass-Through Entities;
Unearned gains, BOK, and insiders << Back Next >> Source of evidence 2006 - 2009