Who receives $31 million tax credits, for investing $9 million, when only $5.4 million goes to investments?

New evidence, in a constantly flowing stream of public fraud, "again" clearly shows why Oklahoma's economic development program produces business failures, no growth, no jobs! And tax revenue shortfalls! A stream of evidence blocked by a dam of denial.

This discovery came in comparing, Oklahoma Tax Commission tax credit "determination letters," LR-07-056 and LR-07-170; OTC IRC Capco reports, US Treasury CDFI Fund, and Securities and Exchange Commission filings. First, in numbers.

Case: Total investments claimed $90 million ($89,982,005 to the dollar), actual investments, $5.4 million

As always, the target business investments are left stuck within these cases $80 million in loans, where interest and loan payments so burden the company there is little if any chance for growth and increasing the likelihood of failure. Totally opposite of proclaimed intentions. As a result of the inevitable anytime state officials' are allowed to ignore accountability and funding secret programs, they are allowed to profit.

The story

New information verifies what has long been suspected, connections between "determination letters," labeled and presented as separate to hide the effect of combining multiple elements used to facilitate fraud. In this case OTC letter LR-07-056 was used to obtain an OTC ruling (authorizing violating requirements) that would stick the business venture needing an investment with a BIA 90% Guaranty loan, the investors would then claim they had invested at risk the loan amount at risk and receive tax credits amounting to 3 times their actual investment. Both the loan scheme and 39% NMTC federal tax credits would be allowed on six tax credits claims reported as having invested a total of $90 million. OTC letter LR-07-170, was addressing one of the six, a $45 million investment. One Prowling Owl recently exposed OTC's involvement in misrepresenting an out of state, as an instate, Capco; and scheme to disguise the failure to meet "investment at risk eligibility requirements."

While OTC uses withholding information and redacting (blacking out) to prevent the public in the dark, this connection was discovered when comparing NMTC federal tax credits awardees found at US Treasury's, CDFI Fund, and OTC Capco reports. This revealed REI New Markets Investment, LLC, Durant, is a recipient matching both amounts of funds and time frame.

Examining past REI New Markets Investment SEC filings reveal, on average REI charged 4.5% legal and management fees. For some inexplicable reason, REI New Markets Investment has not filed an SEC filing, since 2005, or since receiving this latest round of $80 million in NMTC tax credits.

In summary, it is beyond obvious this program is nothing other than a scheme created for and used by state officials and cronies to reap huge unearned profits and public expense. At the same time, it is destroying Oklahoma's economic future!

(1) New Markets Tax Credits are awarded through the US Department of Treasury, Community Development Financial Institutions Fund (the CDFI Fund). Awardees can receive federal tax credits amounting to as much as 39% of certain qualified financial assistance.

(2) 39% of $90 million