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?