Colorado Cases (MAPI) - Bank Frauds
Oklahoma Cases - Bank and Tax Frauds
Oklahoma Attorney General rules tax credits unconstitutional
The ruling invalidates and requires state officials to recover more than $500 million in unpaid taxes. Taxes were avoided using tax credits awarded for unqualified investment claims. State officials have failed to act on several prior occassions.
Tax credits were intended to help offset the risk in investing in business growth. The programs operated in secrecy: uses thinly disguised financial shell games to claim investing 7 (for 30% tax credits) to 10 (for 20% tax credits) times the amount actually invested. This returns investors 200% profit. In some cases, no money is invested.
Unknown identities and numbers of people mask behind LLC's splitting tax credits have been avoiding paying taxes, without investing, and risk losing. No investments, and consequently, no financial growth, and no benefit to the public. View more
$1.3 Billion in Oklahoma tax collections found skimmed off the books.
Ongoing investigations have uncovered, $1.3 Billion in Oklahoma tax collections were skimmed off the top, and off the books, in less than two years.
The skimming is occurring in so called economic development initiatives offering refundable tax credits as investment incentives. These programs have been operating without oversight, tracking or accountability, and in confidence; for nearly 20 years. Those taking the largest tax credits, are allowed to avoid filing the required documentation, to demonstrate the investments meet tax credit eligibility requirements. This has allowed using false and inflated claims without filing incriminating documents. The head of the Oklahoma Tax Commission who personally handles these programs, issues false and misleading reports to hide what has been occurring, and the cost. View more
For some 20 years, Oklahoma taxpayers have been defrauded of $Billions in incoming tax revenue, with the help of state officials, more than willing to turn their backs, and withhold all information about these programs to prevent the public from learning what has been occurring.What is tax credit fraud? How does tax credit fraud work? -
While Oklahoma has nearly 40 active tax credit programs, here we primarily address two different, but very similar programs, that reward "so called" investors either 20% or 30% of the qualified amounts they invest in CAPCOs (capital companies, investment funds, or similar terms); and the CAPCOs, then invest in business ventures. The two programs are 1) "Venture Capital" (VC) tax credits; and 2) the "Small/Rural Small" Business Capital/Venture (SBC, SBV, RSBC and RSBV) tax credit programs.
As evidence clearly shows, the frauds occur when the CAPCOs misrepresent the amounts invested, and/or the fact the so called investments, meet eligibility requirements to receive tax credits.
While on the surface, the programs appear to be identical to most, who are familar with things of this nature. There are subtle differences that are very significant. When breaking down the subtleties, you find the four subcategories, SBC, SBV, RSBC and RSBV, play an important role in the cover up. Those given SBV and RSBV tax credits, and some with SBC and RSBC tax credits, exchange their tax credits for tax refund checks; and their identities are omitted from OpenBooks, in direct violation of the law; to add another layer of secrecy. Why?
One likely reason is - Oklahoma law does not prevent state officials, including lawmakers from, participating as "so called investors" and receive a 200% profit on their investments, immediately.
In this case a state official or lawmaker on their salary, would not normally be able to use several $100,000 or even millions in tax credits. However, they could opt for a tax refund check for the entire amount. All without violating any laws and preventing the public from learning.
The illegal part is upstream, in how false claims are used to obtain an immediate 200% profit on their investments; without any worry of losing those nice unearned profits; even if the investments fail; which they all do because they never received the amount of the investment claim.
Documented evidence has been uncovered, that clearly shows the amounts invested were misrepresented. Often, misrepresented by inflating by seven to ten times, the amount actually invested. It is quite simple. 10 times 20% tax credits, makes 200%. Approximately 7 times 20% makes 200% profit.
How else can anyone offer an immediate 200% profit? It is the fact that public officials continue ignoring something so obvious, that clearly reveals their willful ignorance and negligence.
1. Paul Doughty, received $32 million from investors; then added a $189 million bogus loan document he created as president of First State Bank Altus OK, to claim investing $221 million, in Quartz Mountain Aerospace, and received $66 million in tax credits. Evidence clearly suggests in other cases, where $75 million and $90 million were claimed to have been invested, yet nothing was invested.
How could Doughty get by with this?
The tax commission accepted the claim without question. When QMA soon failed, for lack of funds, the tax commission ignored. Then when the FDIC seized First State Bank Altus, and the bogus loan documents were uncovered, the tax commission ignored. Next the president of QMA, issued a public statement QMA only received $32 million and not $221 million, again the tax commission ignored.
2. Evidence has been uncovered that clearly suggests the Bank of Oklahoma and affiliates passed off $455 million in ordinary commercial loans as investments and received $91 million in tax credits. Then sold the $91 million in tax credits to insiders for $19 million.
How could BOK get by with this?
Robert Heard, a private citizen, responsible for authorizing BOK's tax credit claims, also authorized himself $3.4 million in tax credits. When Heard was head of the state agency, Oklahoma Capital Investment Board (OCIB), responsible for oversight of this tax credit program; Heard outsourced oversight of this tax credit program, to a company he managed, specifying himself, by name, Robert Heard, to have oversight responsibilities.
For more than three years, state and federal authorities, have continually rejected evidence of false claims, based on their position there is nothing illegal occuring. That this only a matter of bad law. Bad law, they claim, yet no one is willing to take action?
Fraudulent tax credit claims state officials ignored.
Oklahoma Tax Commission emails reveal $96 million in illegal tax refund and cover up.
Fraudulent claims filed to obtain "Venture Capital" program tax credits
REI New Markets Investment, Rural Enterprises of Oklahoma
Gladstone Capital, Lindmark Outdoor Advertising.
$45 million fraudulent out of state tax credit claims, involving OTC! View
Who receives $31 million tax credits, for investing $9 million, when only $5.4 million goes to investments? View
Tax credits allowed on investment purchasing billboards in other states! View
Foxborough Scheme View more
Foxborough 10x Investment View
Foxborough: Barry Switzer, Josh Brim
WPG Investments: Frank McGuire
Oak Hills, Avondale Investments, Donald Dillingham View