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Another fine example of outstanding citizen journalism from The Red Dirt Report:
By Nick Baker
The Oklahoma Tax Commission issued 24 determination letters for investment schemes to receive tax credits under the 2006 Grandfather clause. At least ten of the plans were the same as the Scissortail scheme that was allowed tax credits worth $5.40 for every $1 invested by misrepresenting the amount invested at risk. The law clearly states the investment must be “at risk” in order to qualify for tax credits. A not so well disguised shell game was used to claim tax credits on funds borrowed on the assets of the business venture the investment was intended to help. Leaving Scissortail with no risk and the “so called investors’” risk limited to their $5 million. This not only violates the law, but defeats the program by eliminating the very business ventures, venture capital funding and this program were originally created to help.
OTC has exclusive access to all the evidence. We have obtained documentation for two tax credit schemes, both of which have been exposed as fraudulent. The Altus group (currently under investigation for filing a $200 million false claim and multiple other issues) and Scissortail which cost the taxpayers $27 million to generate a mere $5 million in qualified funding.
Scissortail without investing one dime pockets $17 million. The “so called investors” pocket a $10 million profit. Both virtually overnight.
An analogy to help understand the shell game and the element of risk. Read more…