Q. Who created a crooked law?

A. It all started some years back, then evolved, through a program started under the pretense of luring investors to new Oklahoma business ventures by offering up to 30% of their investment back in tax credits. For several years remaining under the radar when the even more greedy saw more ways to exploit the law using what they call loopholes. One being artificial loans to inflate the investment. See footnote. Read more The Crooked Law

Key players during 2006 legislative action that was claimed would "fix the problem"

Kevin Calvey, chairman House Revenue Taxation Committee, and a candidate for US Congress, District 5.

Paul Doughty, president of Altus Ventures, the firm behind the biggest known scheme, at the time, abusing the program. Altus Ventures is a subsidiary of FSB BankCorp Altus, which owns First State Bank, Altus, where Paul Doughty is also president, and several other venture subsidiaries. Key officials, including Paul Doughty, in some of these subsidiaries have been named as defendants in several cases suing for financial wrong doing.

See "Suspicious Donations"

The so called fix?

The fix, was introduced in the Senate as SB 1577, a bill containing roughly 30 pages, where if won approval and was sent to the house to land in the hands of Calvey.

Calvey struggling near the back of the candidate pack, suddenly received huge donations from not only Paul Doughty and other key members of the same group of subsidiaries, but many out of state members of the same investment network, mostly out of state.

The bill to change the law was in Calvey's care during the time donations were arriving and Calvey sought out Doughty to help create the language of the bill. The bill, with a 50 or so page amendment Doughty helped write, finally slipped through a conference committee and vote in the Senate,on May 25. Then the House on May 26, 2006. The closing days of the session, amid the usual flurry of last minute bills that time does not allow reading and deliberation.

* Borrowed money: Simple a paper shuffle, often called an artificial loan, were the money remains in the bank as collateral, and not used. It provides a piece of paper used to inflate the actual investment at risk and take $2 for every $1 invested in tax credits. Considered improper practice by a bank operating under public deposit guarantees. In this case the President of Altus Ventures, the biggest known abuser, is also the President of First State Bank, Altus and is in a position to create the paper work, something that normally go unnoticed without an in depth audit. This has has been reported to federal banking agencies asking them to review this practice.

Q. Exactly which tax credits is this about?

A. The tax credits in question are those made available under what is now called the "Capital Formation Incentive Act", that allows for two different classes of tax credits to be taken.

• RFCFIA: Rural Venture Capital Formation Incentive Act. Eligible for 30% in tax credits.
• SBCFIA: Small Business Capital Formation Incentive Act. Eligible for 20% in tax credits, is basically a subset of RFCFIA

Our primary focus is on RFCFIA as it offers more liberal tax credits and terms of the two. Including all the same features as SBCFIA and more.

The act allows certain investors to receive tax credits up to 30% of their investment risk in new business ventures.

The abuse or fraud comes in the way some are allowed to manipulate the program and receive 200% as opposed to 20 or 30% of their investment risks. In addition several other elements providing cover up, minimizing possibilities of charges of wrong doing and avoiding the return of tax credits if wrong doing is found.

Q. Why are state officials claiming there is "nothing illegal" occuring?

A. The claim is a typical political diversion to hide the truth, by only speaking to selective parts of the law creating the programs being abused. Those writing the law cleverly tried to insure there was nothing in the law that could be easily proven as a violation.

There are plenty other general laws that cover wrongs of this nature, including the wrongs committed by state lawmakers and the governor in creating the law.

• Conspiracy to deprive the public of honest services. (3)
• Depriving others of the intangible right of honest services.
• Fraud. (1)
• Mail fraud. (1)(2)
• Witness tampering. (1)(2)
• Money laundering. (1)(2)
• Racketeering. (1)
• Conspiracy. (1)
• Bribery. (1)
• Embezzlement.
• Paying Kickback. (2)
• Trying to prevent a witness from testifying. (2)
• Deliberate ignorance.

Charges against

Q. How to best experience this site?

Answer

The frauds, scams and corruption exposed here, like all successful forms of corruption are wrapped in several layers of misrepresentation and deceit that give the appearance of legitimacy. We strive to give the big picture in one view. Offering additional background and depth at the point of relevance.

There will be multiple depths of details, depending on the amount of topic detail.

Q. Why three names Verizon MCI Worldcom?

Answer

The company has been under three different names through out this entire process. It started out as MCI WorldCom when the fraud occurred and was detected. Then dropped WorldCom and became MCI, then Verizon purchased MCI.

Here we will refer to as MCI WorldCom (Verizon).